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Unformatted text preview: Answer: B Difficulty: Moderate Rationale: The intercept is the riskfree rate (3.60%) and the slope is (12.00%3.60%)/7.20% = 1.167. 28. What are the proportions of Stocks A, B, and C, respectively in Bo's complete portfolio? A) 40%, 25%, 35% B) 8%, 5%, 7% C) 32%, 20%, 28% D) 16%, 10%, 14% E) 20%, 12.5%, 17.5% Answer: C Difficulty: Moderate Rationale: Proportion in A = .8 * 40% = 32%; proportion in B = .8 * 25% = 20%; proportion in C = .8 * 35% = 28%. Bodie, Investments, Sixth Edition...
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This note was uploaded on 01/31/2010 for the course ECON 3660DE taught by Professor Patrickmartinandvitalialexeev during the Spring '10 term at University of Guelph.
 Spring '10
 PatrickMartinandVitaliAlexeev
 Economics

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