You sold a futures contract on oats at a futures price of 233.75 and at the time of expiration the price was 261.25. What was your profit or loss?

50%

25%

33%

40%

60%

-33.33%

-41.67%

44.31%

-54.22%

25.00%

maximizes her expected utility

maximizes her expected profit

minimizes both her risk and return

minimizes her risk

maximizes her risk

analyzing financial statements

assessing risk tolerance

estimating security betas

determining how much money a client needs to make

identifying market anomalies

The CAL shows risk-return combinations and is also called the efficient frontier of risky assets in the absence of a risk-free asset

The CAL is also called the efficient frontier of risky assets in the absence of a risk-free asset

The CAL shows risk-return combinations

The slope of the CAL is also called the reward-to-volatility ratio

The slope of the CAL equals the increase in the expected return of the complete portfolio per unit of additional standard deviation

0.50; 0.50

0.25; 0.75

cannot be determined

0.19; 0.81

0.65; 0.35

67% and 33%

75% and 25%

cannot be determined

85% and 15%

57% and 43%

9.9%

6.2%

9.0%

8.5%

8.9%

the line that connects the risk-free rate and the global minimum-variance portfolio of the risky securities

the horizontal line drawn from the risk-free rate

the line tangent to the efficient frontier of risky securities drawn from the risk-free rate

the line that connects the risk-free rate and the portfolio of the risky securities that has the highest expected return on the efficient frontier

the line that connects the risk-free rate and the global maximum-variance portfolio of the risky securities

the determination of the best CAL is objective and the choice of the inputs to be used to determine the efficient frontier is subjective

investors are separate beings and will therefore have different preferences regarding the risk-return tradeoff

the choice of inputs to be used to determine the efficient frontier is objective and the choice of the best CAL is subjective

the determination of the best risky portfolio is objective and the choice of the best complete portfolio is subjective

the choice of the best complete portfolio is objective and the determination of the best risky portfolio is objective