In a particular economy, the risk-free rate of interest is 5% and the Markowitz frontier is given by the equation ҵ
Posted: Mon Nov 15, 2021 5:04 pm
In a particular economy, the risk-free rate of interest is 5%
and the Markowitz frontier is given by the equation
𝜎𝑝=28(𝐸[𝑟𝑝])2−7(𝐸[𝑟𝑝])+0.6‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾√ On a graph of
expected return (vertical axis) against risk (horizontal axis),
what is (approximately) the slope of the line joining the risk-free
asset and the market portfolio?
a. 0.418 b. 0.265 c. 1.012 d. 0.847
and the Markowitz frontier is given by the equation
𝜎𝑝=28(𝐸[𝑟𝑝])2−7(𝐸[𝑟𝑝])+0.6‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾√ On a graph of
expected return (vertical axis) against risk (horizontal axis),
what is (approximately) the slope of the line joining the risk-free
asset and the market portfolio?
a. 0.418 b. 0.265 c. 1.012 d. 0.847