What is the slope of slope of the capital allocation line

Reference no: EM13276332

You invest $100 in a risky asset with an expected rate of return of 0.11 and a standard deviation of 0.21 and a T-bill with a rate of return of 0.045. a) How would you form a portfolio that has an expected outcome of $114? b) What is the slope of slope of the Capital Allocation Line formed with the risky asset and the risk-free asset?

Reference no: EM13276332

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