A Portfolio Has a Sharpe Ratio of

question 85

Multiple Choice

A portfolio has a Sharpe ratio of .80,a standard deviation of 17.4 percent,and an expected return of 15.9 percent.What is the risk-free rate?

• A)1.98 percent
• B)2.36 percent
• C)2.48 percent
• D)3.09 percent
• E)3.15 percent

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Definitions:

Plasmids

Small, circular DNA molecules found in bacteria and some yeasts that can replicate independently of the chromosomal DNA.

Genome

The complete set of DNA, including all of its genes, in an organism or cell.

Yeast

Yeast is a single-celled fungus used in baking and brewing, known for its ability to ferment sugars producing carbon dioxide and alcohol.

Roundworms

A phylum of worms characterized by their elongated, cylindrical bodies, many of which are parasitic.