A Portfolio Has a Beta of 1

question 92

Multiple Choice

A portfolio has a beta of 1.35, a standard deviation of 13.3%, and an average return of 12.01%. The market rate is 12.7% and the risk-free rate is 2.1%. What is the Sharpe ratio?

• A).716
• B).745
• C).754
• D).847
• E).863

---

Definitions:

Cohorts

A group of individuals having a statistical factor (such as age or class year) in common in a demographic study.

Vietnam War

A prolonged conflict (1955-1975) between Communist forces in North Vietnam and the government of South Vietnam, with significant involvement by the United States.

Social Security

A government program designed to provide financial assistance to the elderly, disabled, and survivors, funded by payroll taxes.

Cohorts

Groups of individuals sharing a common characteristic, typically used in studies to assess how certain variables affect certain populations over time.