A Portfolio Has a Beta of 1

question 100

Multiple Choice

A portfolio has a beta of 1.23 and a standard deviation of 11.6%. What is the Sharpe ratio if the market return is 12.4% and the market risk premium is 7.9%?

• A).073
• B).118
• C).655
• D).838
• E).902

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Definitions:

Mathematical Neurosis

An intense anxiety or fear related to math and mathematical problem-solving.

Incongruence

Incongruence refers to a mismatch or lack of alignment between an individual's self-image and their actual experiences or behaviors, often leading to psychological discomfort.

Math Courses

Academic courses focused on the study of numbers, quantities, shapes, and their relationships and properties through the use of symbols and theory.

Situationally Specific

Pertaining to or applicable in particular situations rather than universally or generally.