Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 3 of 6
You invest $100 in a risky asset with an expected rate of return of 12% and a standard deviation of 15%, and a T-bill with a rate of return of 5%. The slope of the Capital Allocation Line formed with the risky asset and the risk-free
asset is equal to ______.
B. 0.8000
C. 2.14
A. 0.4667
B. 0.8000
C. 2.14
User Contributed Comments 1
| User | Comment |
|---|---|
| KarenMaciel | Sharpe ratio (E(R)- Risk free return)/ standard dveiation |
I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
Learning Outcome Statements
explain the selection of an optimal portfolio, given an investor's utility (or risk aversion) and the capital allocation line
CFA® 2024 Level I Curriculum, Volume 2, Module 1.