Question
You invest $100 in a risky asset with an expected rate of return of 0.27 and a standard deviation of 0.36 and a T-bill with
You invest $100 in a risky asset with an expected rate of return of 0.27 and a standard deviation of 0.36 and a T-bill with a rate of return of 0.05. The slope of the capital allocation line formed with the risky asset and the risk-free asset is equal to
a. 0.05
b. 1.3333
c. 0.6111
d. 0.7500
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Faith And Finance
Authors: Jim Palmer
1st Edition
0979635624, 9780979635625
