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:

Cost Center

A business unit or department within an organization that does not directly generate revenue but incurs costs, used for budgeting and cost control.

Profit Center

A segment or division within a company that is responsible for generating its own revenues and profits, and is evaluated based on its profitability.

Investment Center

A business unit or segment whose manager has control over cost, revenue, and investments in assets, and is evaluated on profitability and return on investment.

Profit Center

A segment of a company that is directly responsible for generating its own revenue and profit, often evaluated independently for performance assessment.