Which of the Following Equations Is INCORRECT

question 9

Multiple Choice

Which of the following equations is INCORRECT?

• A)E[Rxp] = rf + x(E[Rp] - rf)
• B)E[Rxp] = (1 - x)rf + xE[Rp]
• C)Sharpe ratio =
• D)SD( Rxp)= xSD(Rp)

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Definitions:

Free Choices

The ability or power to make decisions without constraints, enabling one to act on one's own volition.

Indeterminism

The doctrine that not all events, including moral choices, are determined by previously existing causes and that humans have the capability for free will.

Jean-Paul Sartre

A French existentialist philosopher and playwright known for his concepts of freedom, existentialism, and the absurd.

Condemned To Be Free

A philosophical concept, often associated with existentialism, suggesting that humans are burdened with the freedom and responsibility to choose and define their own existence.