SCENARIO 20-4 A Stock Portfolio Has the Following Returns Under the Market

question 95

Multiple Choice

SCENARIO 20-4
A stock portfolio has the following returns under the market conditions listed below.

-Referring to Scenario 20-4,what is the return to risk ratio?

• A)0.64
• B)1.08
• C)1.18
• D)2.00

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Definitions:

Units

A measure of quantity for items produced, services rendered, or resources used.

Period Cost

Costs that are not directly tied to the production process and are therefore expensed in the period they are incurred.

Variable Cost

Outlays that adjust according to the quantity of production or level of output.

Administrative Office

The part of an organization responsible for management and support tasks, such as finance, HR, and general administration.