A Portfolio Has a Beta of 1

question 61

Multiple Choice

A portfolio has a beta of 1.16,a standard deviation of 12.2 percent,and an expected return of 11.55 percent.The market return is 10.4 percent and the risk-free rate is 3.2 percent.What is the portfolio's Sharpe ratio?

• A) 0.57
• B) 0.68
• C) 0.73
• D) 0.77
• E) 0.85

Calculate manufacturing overhead cost for different production levels.

Understand incremental manufacturing costs for changes in production volume.

Determine total costs incurred for financial reporting purposes.

Understand the basic concepts and classifications of costs in accounting.

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Definitions:

Discriminant Validity

The extent to which a concept differs from other concepts that are similar, ensuring that the measure is not reflecting other variables.

Convergent Validity

The degree to which two measures of constructs that theoretically should be related, are in fact related.

Face Validity

refers to the extent to which a test or measure appears to assess what it is intended to measure, based on a superficial examination.

Concurrent Validity

The construct validity of a measure is assessed by examining whether groups of people differ on the measure in expected ways.