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

question 44

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 Wyatt Oil is closest to:

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

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the values are.

Greek Letter

Symbols used in mathematics, science, and engineering to denote variables, constants, and special functions.

Highest Score

The highest mark or value obtained among a set of observed scores or values.

Lowest Score

The smallest value in a data set or distribution.