Use the Following Information to Answer the Question(s)below

question 30

Multiple Choice

Use the following information to answer the question(s) below. The volatility of the market portfolio is 10%,the expected return on the market is 12%,and the risk-free rate of interest is 4%.
-The Sharpe Ratio for the market portfolio is closest to:

• A)0.40.
• B)0.48.
• C)0.56.
• D)0.80.

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Definitions:

Cocaine

A powerful stimulant drug derived from the coca plant, known for its psychoactive effects, including increased energy and alertness.

Heroin

An opioid drug made from morphine, a natural substance taken from the seed pod of the various opium poppy plants, highly addictive and illegal.

Methamphetamine

A powerful, highly addictive stimulant drug affecting the central nervous system.

Alcohol

A psychoactive substance commonly found in beverages such as beer, wine, and spirits, known for its intoxicating effects.