Ella Owns a Share with a Beta of 1

question 36

Multiple Choice

Ella owns a share with a beta of 1.34 and a standard deviation of 16.4%. The share has a total return of 14.8%. The market risk premium is 8.5%, while the return on the market portfolio was 12.0%. What is the value of Sharpe's measure for Ella's portfolio?

• A) 0.21
• B) 0.69
• C) 0.38
• D) 0.90

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Definitions:

Sleep Spindles

Sudden bursts of oscillatory brain activity observed during stage 2 of sleep, believed to play a role in memory consolidation and learning.

REM

Rapid Eye Movement, a phase of sleep characterized by quick movements of the eyes, increased respiration rate, and vivid dreams.

N2

A component of the Event-Related Potential (ERP) that is associated with cognitive control and the detection of novelty.

Barbiturates

Depressant drugs that have a sedative effect.