Your Portfolio Has an Expected Return of 14

question 85

Multiple Choice

Your portfolio has an expected return of 14.2 percent,a beta of 1.31,and a standard deviation of 15.3 percent.The U.S.Treasury bill rate is 3.48 percent.What is the Sharpe ratio of your portfolio?

• A) 0.65
• B) 0.67
• C) 0.70
• D) 0.77
• E) 0.83

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Definitions:

Myelencephalon

Part of the vertebrate embryonic brain; gives rise to the medulla.

Cerebral Cortical Association

Areas of the cerebral cortex involved in complex cognitive processes, integrating information from different sensory modalities.

Sympathetic System

A system of the autonomic division of the nervous system; its general effect is to mobilize energy, especially during stressful situations; prepares the body for a fight, flight, or freeze response. Compare with parasympathetic system.

Parasympathetic System

A division of the autonomic nervous system responsible for the body's rest and digest response, conserving energy and slowing the heart rate.