Chapter 6 Quiz- FIN 322 – Flashcards
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The complete portfolio refers to the investment in
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The risk free asset and the risky portfolio combined
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The reward- to- volatility ratio is given by
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the slope of the capital allocation line, sharpe ratio
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In the mean standard deviation graph, the line that connects the risk-free rate and the optimal risky portfolio, P, is called the _______
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Capital allocation line
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Sharpe ratio
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expected return - risk free rate / standard deviation
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Dollar- weighted average
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whole picture, adding up cash flows in each period to enter them into the calculator
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Capital market line (CML)
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CAL uses market index portfolio as the risky asset, P
