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:

Severe Depression

A significant mental health condition featuring persistent sadness, lack of interest in activities, and a variety of physical and cognitive symptoms, influencing the quality of life.

Anxiety Disorders

A group of mental health disorders characterized by significant and persistent worry and fear about everyday situations, often leading to physical symptoms.

High Neuroticism

A personality trait characterized by a tendency to experience negative emotions, such as anger, anxiety, or depression, more frequently and intensely than others.

Low Conscientiousness

Refers to individuals who tend to be less diligent, organized, and reliable compared to those with high conscientiousness.