Use the Information for the Question(s)below

question 34

Multiple Choice

Use the information for the question(s) below.
Suppose that you currently have $250,000 invested in a portfolio with an expected return of 12% and a volatility of 10%.The efficient (tangent) portfolio has an expected return of 17% and a volatility of 12%.The risk-free rate of interest is 5%.
-The Sharpe ratio for the efficient portfolio is closest to:

• A)0.7.
• B)1.0.
• C)1.4.
• D)1.2.

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Definitions:

Polyandry

A type of marriage where a woman is simultaneously married to more than one man.

Polygyny

A form of marriage in which a man is allowed to have more than one wife.

Polygamy

The practice or condition of having more than one spouse at the same time.

Monogamy

Monogamy is a relationship or mating system in which an individual has only one partner during their lifetime or at any one time.