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

question 113

Multiple Choice

Use the following information to answer the question(s) below.
Suppose that all stocks can be grouped into two mutually exclusive portfolios (with each stock appearing in only one portfolio) : growth stocks and value stocks.Assume that these two portfolios are equal in size (market value) ,the correlation of their returns is equal to 0.6,and the portfolios have the following characteristics: The risk-free rate is 3.5%.
-The Sharpe ratio for the value stock portfolio is closest to:

• A).53.
• B).58.
• C).61.
• D).79.

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Definitions:

TSH

Thyroid Stimulating Hormone, a pituitary hormone that stimulates the thyroid gland to produce thyroxine, which in turn regulates metabolism.

Negative Feedback

A regulatory mechanism in biological and mechanical systems where the output of a process is fed back in a manner that reduces the fluctuations in the output.

Stable In Blood

Refers to a substance that remains unchanged or is consistently maintained in the bloodstream.

Up-regulation

The process by which a cell increases the quantity of a cellular component, such as RNA or protein, in response to an external stimulus.