If the market portfolio has an expected return of 15 percent
and a standard deviation
of 20 percent, and the risk-free rate of interest is 8
percent,
I) What is the slope of the capital market line
(CML)? (5marks)
ii) What does this mean to an investor? (5marks)
- 1 Answers
- 2498 Views
- I also Faced
- E-Mail Answers
Answer Posted / Rajeev Raghuwanshi
This means that an investor can construct their own efficient portfolio by choosing the right mix of risk-free and risky assets. The slope of the CML shows the expected return for each unit of risk taken, which helps investors determine optimal asset allocations based on their risk tolerance.
| Is This Answer Correct ? | 0 Yes | 0 No |
Post New Answer View All Answers
tell me abt ur most memorable moment
please send me ubi model papers to my email idsssss anil0001_mca@yahoo.co.in , ravi_kumar3713@yahoo.com thankuuuuuuu
* i completed gratuation BBA but i passed 50% marks and i will give bank exam its valiad for bank
I Need Apsrtc Traffic Supervisor Medal Paper.. Please send me any one.....gasiganti@gmail.com
IS ANYONE FROM GUJARAT RECEIVED JOINING LETTER OF BOB CLERK 2011 , KINDLY POST IT or CONTACT BY EMAIL. sinhasanjiv73@gmail.com
why DEPB Licence application is doing
what is your team size
why u have choosen finance has a specialisation
which companies in nifty
