A Portfolio Has a Beta of 1

question 84

Multiple Choice

A portfolio has a beta of 1.16,a standard deviation of 12.2 percent,and an expected return of 11.55 percent.The market return is 10.4 percent and the risk-free rate is 3.2 percent.What is the portfolio's Sharpe ratio?

• A).57
• B).68
• C).73
• D).77
• E).85

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Definitions:

Omega

Symbolically refers to the last or final thing in a series; often associated with the end.

Alpha

The first letter of the Greek alphabet used symbolically in various contexts, often to denote superiority or primary status within a group.

Structural-Functional

A framework in sociology that views society as a complex system whose parts work together to promote solidarity and stability, emphasizing the interrelations of social institutions.

Social Conflict

A form of struggle or disagreement between individuals, groups, or classes, often arising from opposing interests, needs, and values.