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In the Investor's Choice Problem, the Slope of the Budget

Question 64

Multiple Choice

In the investor's choice problem, the slope of the budget line equals:


A) the difference between the expected return on the risky asset and return on the risk-free asset, divided by the standard deviation of the risky asset.
B) the difference between the expected return on the risky asset and return on the risk-free asset, divided by the standard deviation of the portfolio.
C) the difference between the expected return on the risky asset and the return on the entire portfolio., divided by the standard deviation of the portfolio.
D) the rate at which risky assets are traded for risk-free assets.

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