A Portfolio Has a Standard Deviation of 15

question 18

Multiple Choice

A portfolio has a standard deviation of 15.1%, a beta of 1.12, and a Treynor ratio of .085. The risk-free rate is 2.2%. What is the portfolio's expected rate of return?

• A)10.83%
• B)11.38%
• C)11.72%
• D)12.41%
• E)12.56%

---

Definitions:

Industrially Advanced Country

A country that has a highly developed economy and advanced technological infrastructure relative to other less industrialized nations.

Per Capita Income

The average income earned per person in a specific area or country, calculated by dividing the area's total income by its total population.

Income Growth

An increase in the amount of money received from work, investment, or other sources, over time, contributing to economic expansion or personal wealth.

World's Population

The total number of people currently living on Earth.