A Portfolio Has a Beta of 1

question 3

Multiple Choice

A portfolio has a beta of 1.23 and a standard deviation of 11.6 percent.What is the Sharpe ratio if the market return is 12.4 percent and the market risk premium is 7.9 percent?

• A).07
• B).11
• C).65
• D).84
• E).90

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Definitions:

Situational Attribution

Attributing a behavior to some external cause or factor operating within the situation; an external attribution.

Social Psychology

The scientific study of how individuals think, feel, and behave in social contexts.

Imagined Presence

The psychological phenomenon of feeling or sensing that another person or entity is present when they are not.

Situational Attribution

involves attributing a person's behavior to external or environmental factors, rather than to internal personality traits.