What is the CAL (Capital Allocation Line) in Portfolio Theory?
In portfolio theory we use different graphical representations to illustrate the key concepts. Which of the following sentences better represents the CAL (Capital Allocation Line? a) A line describing the combination of expected return and beta available to an investor from combining the optimal portfolio of risky assets with the risk-free asset. b) A line
Leer másWhat can we say about the performance of traditional asset classes in the long run?
If we consider data from the US market through a long period of time (1926 – 2017), which one of the following sentence is correct? a) Small company stocks show the highest return and risk, while treasury bills show the lowest return and risk. b) Large company stocks show the highest return and risk, while
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