The slope of the efficient frontier is calculated as follows A) E(R_portfolio)/E(σ_portfolio) B) E(σ_portfolio)/ E(R_portfolio) C) DE(R_portfolio)/DE(σ_portfolio) D) DE(σ_portfolio)/DE(R_portfolio) E) None of the above

Question

Quizplus · Accepted Answer

The slope of the efficient frontier is calculated as the change in expected return (DE(R_portfolio)) divided by the change in expected risk (DE(σ_portfolio)).

The Slope of the Efficient Frontier Is Calculated as Follows