Question
The risk-free rate, expected returns and standard deviations for four individual stocks are given below. The investor must develop a complete portfolio by combining the
The risk-free rate, expected returns and standard deviations for four individual stocks are given below. The investor must develop a complete portfolio by combining the risk-free asset with one of the securities. To achieve the best capital allocation line (CAL), the investor would choose ________.
| Stock | Expected Return | Std dev |
| A | 12% | 4% |
| B | 15% | 6% |
| C | 20% | 12% |
| D | 25% | 15% |
| Risk free | 5% |
|
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Finance At 40 Financial Intelligence
Authors: MOIRA O'NEILL Moira O'Neill
1st Edition
1408101114, 978-1408101117
