Multiple Choice
You invest $100 in a risky asset with an expected rate of return of 0.11 and a standard deviation of 0.20 and a T-bill with a rate of return of 0.03. The slope of the capital allocation line formed with the risky asset and the risk-free asset is equal to
A) 0.47.
B) 0.80.
C) 2.14.
D) 0.40.
Correct Answer:
Verified
Correct Answer:
Verified
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