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Basic Question 0 of 15
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 just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
explain the selection of an optimal portfolio, given an investor's utility (or risk aversion) and the capital allocation line
CFA® 2025 Level I Curriculum, Volume 2, Module 1.