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The Slope of the CAL = E(rp) rf)/OP. This is also reward-tovolatility ratio of the CAL. The best feasible CAL is the CAL with highest

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The Slope of the CAL = E(rp) rf)/OP. This is also reward-tovolatility ratio of the CAL. The best feasible CAL is the CAL with highest reward-tovolatility ratio which is the achievable CAL with the maximum slope. The Ws* equation above solves for the weight of the Stock fund in the risky portfolio P that achieves the maximum slope. The \"*\" indicates an optimal (in this case maximum) value. Slope of the Optimal CAL =

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