A Portfolio Has a Standard Deviation of 12

question 49

Multiple Choice

A portfolio has a standard deviation of 12.1%, a beta of 1.24, and a Treynor ratio of .094. The risk-free rate is 3.2%. What is the portfolio's expected rate of return?

• A)14.86%
• B)15.25%
• C)15.42%
• D)16.41%
• E)16.56%

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Definitions:

Drug Therapy

The treatment of a disease or condition with medication.

Clozaril

A brand name for Clozapine, an antipsychotic medication used to treat schizophrenia, especially in cases where other antipsychotics are ineffective.

Negative Symptoms

Characteristics that indicate the absence or diminution of normal functions, often associated with certain mental health conditions, such as a lack of emotion or motivation.

Apathy

Apathy is a lack of interest, enthusiasm, or concern towards activities or life in general.