Your complete portfolio is worth a total of $1000 and can be formed out of 2 assets: a risk free asset that has a rate of return of 5% and a risky portfolio with an expected return of 8%. If you want your complete portfolio to have an expected rate of return equal to 8%, you must:

		invest positive amounts in both the risk free asset and the risky portfolio (the amounts add up to $1000)
		invest more than $1000 in the risky portfolio
		Invest $1000 in the risky portfolio
		invest $1000 in the risk free asset

Which of the following statements is correct?

		All portfolios on the capital allocation line have the same Sharpe ratios
		Short selling the risk-free asset is equivalent to lending money at the risk free rate
		In a portfolio, asset weights must sum up to 0
		the capital allocation line is downward sloping

You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 10% and a standard deviation of 20% and a Treasury bill with a rate of return of 6%. The slope of the capital allocation line formed with the risky asset and the risk-free asset is approximately _________.

		6.52
		0.8
		0.5
		0.2

You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 16% and a standard deviation of 20% and a Treasury bill with a rate of return of 6%. __________ of your complete portfolio should be invested in the risky portfolio if you want your complete portfolio to have a standard deviation of 18%.

		100%
		75%
		90%
		55%

Your complete portfolio is worth a total of $1000 and can be formed out of 2 assets: a risk free asset that has a rate of return of 5% and a risky portfolio with an expected return of 8%. If you want your complete portfolio to have an expected rate of return equal to 5%, you must:

		Invest $1000 in the risk free asset
		Invest $500 in the risk free asset
		Invest $1000 in the risky portfolio
		Invest more than $1000 in the risky portfolio