A Portfolio Has a Standard Deviation of 12

question 33

Multiple Choice

A portfolio has a standard deviation of 12.1 percent,a beta of 1.24 and a Treynor ratio of 0.094.The risk-free rate is 3.2 percent.What is the portfolio's expected rate of return?

• A) 14.86 percent
• B) 15.25 percent
• C) 15.42 percent
• D) 16.41 percent
• E) 16.56 percent

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Definitions:

RUPA

The Revised Uniform Partnership Act, which provides a framework for the governance of business partnerships in several states.

Equal Share

A portion or percentage of something, such as profits or ownership, that is distributed equally among all members or parties involved.

Silent Partner

An investor in a partnership who contributes capital but does not take part in the management or daily operations of the business.

Day-To-Day Operations

Involves the regular, routine activities necessary for a business or organization to function efficiently.