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:

Organization

An entity comprising multiple people structured in a specific way to achieve a series of goals or objectives.

Knowing-Doing Gap

The disconnect between knowing what needs to be done and actually implementing or doing it, often observed in organizational settings.

Rewards

Compensation or incentives given to individuals or groups for achieving specific goals or performance targets.

Internal Competition

Competitive dynamics within an organization, where members or departments compete against each other for resources, recognition, or advancement.