A Portfolio Has a Variance of

question 7

Multiple Choice

A portfolio has a variance of .0165, a beta of 1.05, and an expected return of 12.65%. What is the Sharpe ratio if the expected risk-free rate is 3.4%?

• A).662
• B).706
• C).720
• D).823
• E).869

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Definitions:

Color Constancy

The ability of the human visual system to perceive colors of objects, under varying lighting conditions, as being constant.

Red-tinted Glasses

Glasses with lenses that are tinted red, which can influence perception and mood, sometimes used experimentally to study the effects of colored light on human behavior.

Green Apple

A variety of apple that is generally green in color, often with a tart flavor, used both in cooking and consumed raw.

Trichromatic Theory

A theory of color vision that explains how humans perceive color through the response patterns of three types of cones in the retina, sensitive to short, medium, and long wavelengths of light.