A Portfolio Has a Beta of 1

question 82

Multiple Choice

A portfolio has a beta of 1.26,a standard deviation of 15.9 percent,and an average return of 15.07 percent.The market rate is 12.7 percent and the risk-free rate is 3.6 percent.What is the Sharpe ratio?

• A).61
• B).68
• C).72
• D).84
• E).88

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Definitions:

Open Circulatory System

A type of circulatory system where blood is not always contained within vessels but flows freely through cavities in the body.

Pumping Organ

This usually refers to the heart, an organ responsible for circulating blood throughout the body by rhythmic contraction and dilation.

Arteries

Blood vessels that carry oxygen-rich blood away from the heart to all parts of the body.

Veins

Blood vessels that carry blood towards the heart from various parts of the body.