If an Asset Has Expected Return 12%, Standard Deviation 10

question 8

Multiple Choice

If an asset has expected return 12%, standard deviation 10%, and T-Bills return is 8%, then its "Sharpe Ratio" is:

• A) 0
• B) 1.200
• C) 0.667
• D) 0.400

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Definitions:

Marketing Environment Analysis Framework

A tool used to assess external factors influencing a company’s ability to market its products, including political, economic, social, and technological factors.

Immediate Environment Analysis Framework

A strategic tool used to assess the direct environment in which an organization operates, including competitors, customers, and suppliers.

Macroenvironment Analysis Framework

A strategic tool used to analyze the external environment that a business operates in, often involving political, economic, sociocultural, technological, environmental, and legal factors (PESTEL).

Inflation

Refers to the persistent increase in the prices of goods and services.