A Portfolio Has an Average Return of 12

question 50

Multiple Choice

A portfolio has an average return of 12.4 percent,a standard deviation of 15.8 percent,and a beta of 1.35.The risk-free rate is 2.6 percent.What is the Sharpe ratio?

• A).49
• B).52
• C).62
• D).71
• E).75

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Definitions:

Birth Order

The theory that the order in which a child is born into a family can influence their personality and psychological development.

Safeguarding Tendencies

Psychological mechanisms that individuals employ to protect their self-esteem or ego from threats and anxiety.

Neurotic Trends

Patterns of thought, emotion, and behavior that are maladaptive and often stem from unresolved psychological conflicts.

Basic Anxiety

According to Karen Horney, the feeling of being isolated and helpless in a potentially hostile world, fundamentally shaping personality.