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:

Goals

Objectives or desired outcomes that an individual, group, or organization aims to achieve.

Participative Behaviors

Practices where leaders involve followers in the decision-making process, enhancing engagement, empowerment, and collective responsibility.

Decision-Making Process

The systematic approach to making choices among various alternatives, based on factors such as evidence, preferences, and consequences.

Path-Goal Theory

A leadership theory that suggests a leader's effectiveness is defined by their ability to clear paths for followers to achieve goals, adjusting leadership styles based on situational needs.