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:

Economic Well-being

A measure of the financial health and quality of life of individuals or populations, often assessed by factors like income, employment, and access to goods and services.

Central Planners

Individuals or government authorities tasked with overseeing the economic direction and allocation of resources within a centrally planned economy.

Opportunity Cost

The financial downside of skipping over the second-best opportunity when a decision is on the line.

Video Games

Digital games played on computers, consoles, or mobile devices, often involving interactive gameplay.