You Find That the Annual Sharpe Ratio for Stock a Returns

question 57

Multiple Choice

You find that the annual Sharpe ratio for stock A returns is equal to 1.8. For a 3-year holding period, the Sharpe ratio would equal ________.

• A) 1.8
• B) 2.48
• C) 3.12
• D) 5.49

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Definitions:

Little or No Investment

Situations or ventures that require minimal to no financial outlay to start or maintain.

Exchange Controls

Governmental restrictions on the trade of currencies and the movement of capital across countries, aiming to stabilize economies.

Exporters

Individuals or companies that sell goods or services produced in one country to buyers in other countries.