Question: 1. Given an optimal risky portfolio with expected return 15%, standard deviation 30%, and risk-free rate 1%: (a) What is the slope of the

1. Given an optimal risky portfolio with expected return 15%, standard deviation

1. Given an optimal risky portfolio with expected return 15%, standard deviation 30%, and risk-free rate 1%: (a) What is the slope of the CAL? (b) If you have a utility function U = E(r) - A, and your coefficient of risk aversion is 3, what is the optimal weight in your portfolio given to the risky investments?

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