Statements regarding the capital allocation line

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Which of the following statements regarding the Capital Allocation Line (CAL) is TRUE?

A) The slope of the CAL is called the variability-to-reward ratio.

B) The slope of the CAL equals the increase in expected return of a risky portfolio per unit of the standard deviation.

C) The slope of the CAL is also called the Shark Ratio

D) The slope of the CAL equals the increase in the standard deviation of a risky portfolio per unit of expected return.

Reference no: EM132826023

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