A Portfolio Has a Beta of 1

question 81

Multiple Choice

A portfolio has a beta of 1.23 and a standard deviation of 11.6 percent.What is the Sharpe ratio if the market return is 12.4 percent and the market risk premium is 7.9 percent?

• A) 0.07
• B) 0.11
• C) 0.65
• D) 0.84
• E) 0.90

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Definitions:

Appendicitis

Inflammation of the appendix, a condition that typically requires surgical removal of the appendix.

Cholecystitis

Inflammation of the gallbladder, often due to gallstones blocking the ducts leading to severe pain and digestive problems.

Absent Bowel Sounds

Indicates a lack of intestinal activity, which can be a sign of blockage or other gastrointestinal issues.

Quadrant

In anatomy, a division of the abdomen into four parts for diagnostic, descriptive, and treatment purposes, each referred to as a quadrant.