A Portfolio Has an Average Return of 9

question 34

Multiple Choice

A portfolio has an average return of 9.9%, a standard deviation of 12.3%, and a beta of 1.23. The risk-free rate is 1.9%. What is the Sharpe ratio?

• A).593
• B).650
• C).679
• D).713
• E).756

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Definitions:

Classical Conditioning

A teaching method involving the repeated association of two stimuli; a reaction originally produced by the second stimulus eventually becomes produced by just the first stimulus.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a reflexive response without prior conditioning.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually triggers a conditioned response.

Classical Conditioning

An instructional process where pairing two stimuli repeatedly results in a response first prompted by the second stimulus, but eventually prompted by only the first stimulus.