A Portfolio Has a Sharpe Ratio of

question 70

Multiple Choice

A portfolio has a Sharpe ratio of .63, a standard deviation of 13.2%, and an expected return of 12.4%. What is the risk-free rate?

• A)3.98%
• B)4.08%
• C)4.82%
• D)5.34%
• E)6.23%

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Definitions:

Side-blotched Lizards

A species of lizards known for their side blotches as distinguishing marks and a subject of study in evolutionary biology due to their mating strategies.

Panda Principle

A concept referring to the evolutionary principle that organisms adapt through a series of compromises and trade-offs, rather than through the development of optimal features.

Sensory Systems

Complex networks of organs and structures that allow organisms to perceive and respond to their surroundings, including sight, sound, touch, taste, and smell.

Nuptial Gift

A resource provided by one member of a species (often the male) to a mating partner (often the female) as part of courtship or copulation, which can range from food to items that enhance the recipient's survival or reproductive success.