The Expected Return on the Market Is 12% with a Standard

question 60

Multiple Choice

The expected return on the market is 12% with a standard deviation of 20%.The risk-free rate is 4.5%.What is the Sharpe ratio of a portfolio with an expected return of 10.5% and a standard deviation of 12%?

• A)0.38
• B)0.50
• C)0.70
• D)0.88

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Definitions:

Humanistic Theory

A psychological perspective emphasizing individual potential for growth and the importance of self-actualization and psychological well-being.

Self-Concept

An individual's perception and understanding of themselves, including beliefs, feelings, and awareness of personal attributes.

Archetype

A universally understood symbol or theme that recurs across cultures and literature, often representing fundamental human experiences.

Emotional Stability

The ability to remain steady and balanced in one's emotions, rather than being easily upset or distressed.