Asset a Has an Expected Return of 20% and a Standard

question 22

Multiple Choice

Asset A has an expected return of 20% and a standard deviation of 25%. The risk-free rate is 10%. What is the reward-to-variability ratio?

• A) .40
• B) .50
• C) .75
• D) .80

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Definitions:

Anterograde Amnesia

A condition where an individual cannot form new memories after the event that caused the amnesia, although memories from before the event remain intact.

Explicit Memories

Memories that can be consciously recalled, such as facts and events.

Implicit Memories

Memories that influence our behaviors and knowledge without conscious awareness, typically acquired through repetition and practice.

Selective Attention

The ability to direct mental resources to relevant information in order to process that information further, while also ignoring irrelevant information.