A Portfolio with a 25% Standard Deviation Generated a Return

question 51

Multiple Choice

A portfolio with a 25% standard deviation generated a return of 15% last year when T-notes were paying 4.5%. This portfolio had a Sharpe measure of ________.

• A)0.22
• B)0.60
• C)0.42
• D)0.25

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Definitions:

Form 940

A tax form used by employers to report their annual Federal Unemployment Tax Act (FUTA) tax.

FICA Tax

A mandatory tax deducted from employees' paychecks in the United States to fund Social Security and Medicare programs.

SUTA Tax

State Unemployment Tax Act tax, a payroll tax that employers pay to fund the state's unemployment insurance.