A Portfolio Consists of the Following Two Funds

question 17

Multiple Choice

A portfolio consists of the following two funds. What is the Sharpe ratio of the portfolio?

• A) 0.422
• B) 0.547
• C) 0.645
• D) 0.721
• E) 0.798

---

Definitions:

Openly

In a manner that is not secretive or hidden; conducting actions in a visible and public way, often implying transparency or honesty.

Continuously

Occurring without interruption or cessation; ongoing.

Adverse

Unfavorable or harmful conditions or circumstances that can negatively affect or pose challenges to individuals or entities.

Necessity

A term that can refer to a state of being required or indispensable, or, in legal terms, a defense that asserts an act was done out of a need to prevent a greater harm.