Question
The universe of available securities includes two risky stock funds, A and B and T-Bills. The data for the universe are as follows: Expected Return
The universe of available securities includes two risky stock funds, A and B and T-Bills. The data for the universe are as follows:
| Expected Return | Standard Deviation | |
| A | 10% | 20% |
| B | 30% | 60% |
| T-Bills | 5% | 0% |
The correlation coefficient between funds A and B is -0.2
a) Find the slope of the Capital Allocation Line
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Personal Finance A Practical Approach
Authors: Jane King, Mary Carey
1st Edition
0199668833, 9780199668830
