A Portfolio Has a Beta of 1

question 91

Multiple Choice

A portfolio has a beta of 1.26, a standard deviation of 15.9%, and an average return of 15.07%. The market rate is 12.7% and the risk-free rate is 3.6%. What is the Sharpe ratio?

• A).616
• B).684
• C).721
• D).847
• E).880

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Definitions:

Uninsured Senior Citizens

Older adults who lack health insurance coverage, facing potential challenges in accessing affordable healthcare.

Net Worth

The total value of an individual’s or entity’s assets minus liabilities.

Medicaid

Medicaid is a public health insurance program in the United States that provides health coverage to eligible low-income adults, children, pregnant women, elderly adults, and people with disabilities.

Chebysheff's Theorem

A theorem that provides a minimum proportion of observations that lie within a specified number of standard deviations from the mean, applicable to all distributions.