A Portfolio Has a Beta of 1

question 66

Multiple Choice

A portfolio has a beta of 1.16, a standard deviation of 12.2%, and an expected return of 11.55%. The market return is 10.4% and the risk-free rate is 3.2%. What is the portfolio's Sharpe ratio?

• A).574
• B).684
• C).737
• D).770
• E).855

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Definitions:

Transcranial Magnetic Stimulation

A non-invasive procedure that uses magnetic fields to stimulate nerve cells in the brain to treat depression and other disorders.

Frontal Lobotomy

A surgical procedure once used to treat mental disorders, involving the removal or destruction of parts of the frontal lobes of the brain, now widely considered inhumane and obsolete.

Electroconvulsive Therapy

A psychiatric treatment in which electric currents are passed through the brain, intentionally triggering a brief seizure, to provide relief from mental health conditions such as severe depression.

Dietary Restrictions

Guidelines or limitations on what individuals can eat due to health issues, ethical beliefs, or dietary preferences.