Ella's Portfolio Has a Beta of 1

question 49

Multiple Choice

Ella's portfolio has a beta of 1.34 and a standard deviation of 16.4%. The portfolio 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) 0.38
• C) 0.69
• D) 0.90

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Definitions:

Nasal Cavities

The hollow spaces within the nose, involved in breathing and filtering air before it reaches the lungs.

Pharynx

Throat; opens to airways and digestive tract.

Vocal Cords

The vocal cords are folds of tissue in the throat that vibrate and produce sound when air is expelled from the lungs, playing a crucial role in speaking, singing, and making other sounds.

Ligaments

Bands of tough, elastic connective tissue that connect bones together and provide support to joints.