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:

Negative Words

Terms that convey a negative connotation, often used to express criticism, pessimism, or absence.

Maintain Accuracy

The act of ensuring information remains correct, precise, and free from errors.

Audience-based Benefit

an advantage or positive outcome that specifically appeals to or is targeted towards a particular group or audience.

Project Delay

A situation where a project extends beyond its planned schedule due to various factors such as resource constraints, scope changes, or unforeseen challenges.