A Portfolio Has a Sharpe Ratio of

question 55

Multiple Choice

A portfolio has a Sharpe ratio of .75, a standard deviation of 17.0%, and an expected return of 15.9%. What is the risk-free rate?

• A)1.98%
• B)2.36%
• C)2.48%
• D)3.09%
• E)3.15%

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Definitions:

Tax Advantages

Financial benefits conferred by tax laws to encourage certain activities or investments.

Biodiversity Rating

A quantification or evaluation of the diversity of plant and animal life in a particular habitat or ecosystem.

Global Annual Catch

The total quantity of fish and other aquatic animals captured worldwide in a year, often used to assess the sustainability of fishing practices.

Sackville Waterfowl Park

A nature reserve located in Sackville, New Brunswick, Canada, known for its diverse bird species and natural habitats.