A Portfolio Has a Sharpe Ratio of

question 43

Multiple Choice

A portfolio has a Sharpe ratio of .74, a standard deviation of 18.0%, and an expected return of 15.9%. What is the risk-free rate?

• A)1.98%
• B)2.36%
• C)2.58%
• D)3.09%
• E)3.15%

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome.

Major Depressive Disorder

A mental disorder characterized by persistent and intense feelings of sadness or despair and a lack of interest in activities, impacting daily functioning.

Episodic

Relating to or consisting of distinct or separate events or experiences, often in the context of memory.

Symptoms

Signs or indicators of a condition or disease, as experienced or reported by the patient.