A Portfolio Has a Beta of 1

question 82

Multiple Choice

A portfolio has a beta of 1.26,a standard deviation of 15.9 percent,and an average return of 15.07 percent.The market rate is 12.7 percent and the risk-free rate is 3.6 percent.What is the Sharpe ratio?

• A).61
• B).68
• C).72
• D).84
• E).88

---

Definitions:

Classical Conditioning

A learning process in which a neutral stimulus becomes associated with an inherently meaningful event or stimulus, eliciting a conditioned response.

Turned Off

A colloquial term describing a lack of interest or a state of disinclination towards something.

Memory

The faculty by which the mind stores and remembers information, critical to learning and the formation of identity.

Ivan Pavlov

A Russian physiologist known for his work in classical conditioning, particularly his experiments with dogs.