The Slope of the Budget Line, Faced by an Investor

Multiple Choice

The slope of the budget line, faced by an investor deciding what percentage of her portfolio to place in a risky asset, increases when the:

A) standard deviation of the portfolio gets smaller.
B) standard deviation of the risky asset gets larger.
C) rate of return on the risk-free asset gets larger.
D) rate of return on the risky asset gets larger.
E) rate of return on money gets larger.