If a Portfolio Had a Return of 15%, the Risk-Free

question 14

Multiple Choice

If a portfolio had a return of 15%, the risk-free asset return was 5%, and the standard deviation of the portfolio's excess returns was 30%, the Sharpe measure would be

• A) 0.20.
• B) 0.35.
• C) 0.45.
• D) 0.33.
• E) 0.25.

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Definitions:

Intermittent Explosive Disorder

Disorder characterized by (a) several episodes of failure to resist aggressive impulses that result in serious assaultive acts or destruction of property, (b) a degree of aggressiveness grossly out of proportion to the situation, and (c) symptoms not better explained by another mental disorder (such as antisocial personality disorder), the effects of substances, or a medical condition (e.g., a head trauma).

Assault

An act of causing physical harm to someone or attempting or threatening to do so.

Frustration

A psychological state of being upset or annoyed as a result of being unable to change or achieve something.

Intermittent Explosive Disorder

A psychological condition marked by severe episodes of anger that are beyond control and not justified by the circumstances.