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:

RUPA

The Revised Uniform Partnership Act, which is a set of laws adopted by several states in the United States to govern the formation, operation, and dissolution of partnerships.

For Profit

An organization or activity aimed at making money, rather than serving a charitable or other non-financial goal.

Requirement

A stipulated condition or standard that must be met or complied with, often within a legal, regulatory, or contractual context.

Charging Order

A court’s order granting rights in a partner’s transferable interest to a personal creditor of the partner; a creditor with a charging order is entitled to the partner’s share of partnership distributions.