What is the slope of the cml

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Reference no: EM132644838

You estimate that a passive portfolio invested to mimic the S&P500 stock index yields an expected rate of return of 13% with a standard deviation of 25%. Draw the CML and your fund's CAL on an expected return/standard deviation diagram.

a. What is the slope of the CML?

b. Characterize in one short paragraph the advantage of your fund over the passive fund.

Reference no: EM132644838

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