The slope of the budget line that expresses the tradeoff between risk and return for an asset can be represented by
A. (Rf – Rm)/σm.
B. (Rm – Rf)/σm.
C. Rm – Rf.
D. b.
Answer:B
The slope of the budget line that expresses the tradeoff between risk and return for an asset can be represented by
A. (Rf – Rm)/σm. B. (Rm – Rf)/σm. C. Rm – Rf. D. b.