A Portfolio Consists of the Following Two Funds

question 6

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) 0.648
• D) 0.721
• E) 0.798

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Definitions:

Utility Function

A mathematical representation that shows the relationship between a consumer's level of satisfaction and quantities of consumed goods or services.

Pope And Young Score

A scoring system used to measure the size and symmetry of big game animals' antlers and horns, often for record-keeping or hunting achievement purposes.

Hunting Stand

A structure used by hunters to elevate themselves above the ground to improve visibility and shooting range on their prey.

Diversification

Practice of reducing risk by allocating resources to a variety of activities whose outcomes are not closely related.