A Portfolio Has a Sharpe Ratio of 0

question 57

Multiple Choice

A portfolio has a Sharpe ratio of 0.74,a standard deviation of 18.0 percent,and an expected return of 15.9 percent.What is the risk-free rate?

• A) 1.98 percent
• B) 2.36 percent
• C) 2.58 percent
• D) 3.09 percent
• E) 3.15 percent

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Definitions:

Antisocial Personality Disorder

A mental disorder characterized by a long-term pattern of disregard for, or violation of, the rights of others.

Agreeableness

A personality trait in the Big Five model characterized by qualities of kindness, cooperation, and warmth.

Conscientiousness

A personality trait characterized by being organized, dependable, and disciplined.

Bipolar Disorder

A mental health condition that causes extreme mood swings that include emotional highs (mania or hypomania) and lows (depression).