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

question 98

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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: 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 market portfolio (which is a 50-50 combination of the value and growth portfolios) is closest to: A) .53. B) .58. C) .61. D) .79. The risk-free rate is 3.5%.
-The Sharpe ratio for the market portfolio (which is a 50-50 combination of the value and growth portfolios) is closest to:


Definitions:

White Settlers

Individuals of European descent who settled in territories outside of Europe, often involving colonization and displacement of indigenous populations.

Internal Colonialism

A concept referring to the uneven and exploitative economic and political relationships within a country, often between dominant and marginalized groups.

Cultural Imperialism

The practice of promoting and imposing a culture, usually that of a more powerful nation, over a less powerful society.

Racism

Bias, injustice, or hostility toward individuals of a distinct race, stemming from the conviction that one's own race surpasses others.

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