CFA Practice Question

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CFA Practice Question

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 ______.

A. 0.4667
B. 0.8000
C. 2.14
Correct Answer: A

(12% - 5%)/15% = 0.4667

User Contributed Comments 1

User Comment
KarenMaciel Sharpe ratio (E(R)- Risk free return)/ standard dveiation
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