If a Portfolio Had a Return of 12%, the Risk-Free

question 58

Multiple Choice

If a portfolio had a return of 12%, the risk-free asset return was 4%, and the standard deviation of the portfolio's excess returns was 25%, the Sharpe measure would be

• A) 0.12.
• B) 0.04.
• C) 0.32.
• D) 0.16.
• E) 0.25.

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Definitions:

Tool Use

The behavior of using objects as tools to perform tasks such as obtaining food, shelter, or for defensive purposes, observed in various animal species.

Homo Heidelbergensis

An extinct species or subspecies of archaic humans known from fossils dating from the Lower Paleolithic period, about 600,000 to 200,000 years ago.

Hunting Capability

The ability or skill set an organism possesses to track, pursue, and capture prey for sustenance.

Neanderthals

An extinct species of human closely related to modern humans, living in Europe and parts of Asia until about 40,000 years ago.