Which Combination of Returns and Standard Deviation Provides the Highest

question 60

Multiple Choice

Which combination of returns and standard deviation provides the highest Sharpe ratio? Assume a 3% risk free rate.

• A) return = 12%, standard deviation = 20%
• B) return = 15%, standard deviation = 22%
• C) return = 21%, standard deviation = 25%
• D) return = 25%, standard deviation = 35%

---

Definitions:

Financial Inability

The lack of sufficient monetary resources to afford or maintain a desired standard of living or to fulfill financial obligations.

Adopted Children

Children who are legally taken into a family different from their birth family as their own.

Foster Homes

Households that provide temporary care for children whose biological parents are unable to care for them.

Economically Advantaged

Individuals or groups with greater financial resources, wealth, or access to economic opportunities compared to others.