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:

Dry Climates

Climatic regions characterized by low precipitation, leading to arid or semi-arid conditions.

Kilometers

A unit of length in the metric system, equal to 1,000 meters or approximately 0.62 miles, used to measure distance.

Deposited

The process by which sediments, minerals, and other substances are laid down or settled in a new location.

Slowing

The reduction in speed or rate of an activity or process.