Question
You invest $100 in a risky asset with an expected rate of return of 0.17 and a standard deviation of 0.21 and a T-bill with
You invest $100 in a risky asset with an expected rate of return of 0.17 and a standard deviation of 0.21 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. | 0.8095 | |
| b. | 0.5714 | |
| c. | 1.2353 | |
| d. | 0.05 |
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Finance And Economics Discussion Series Monetary Policy And The Housing Bubble
Authors: United States Federal Reserve Board, Jane Dokko
1st Edition
1288704682, 9781288704682
