A Portfolio Has a Beta of 1

question 84

Multiple Choice

A portfolio has a beta of 1.16,a standard deviation of 12.2 percent,and an expected return of 11.55 percent.The market return is 10.4 percent and the risk-free rate is 3.2 percent.What is the portfolio's Sharpe ratio?

• A).57
• B).68
• C).73
• D).77
• E).85

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Definitions:

Iatrogenic

Produced or caused inadvertently by a clinician.

Cortisol

A steroid hormone released by the adrenal glands in response to stress or low blood-glucose concentration, playing an important role in metabolism and the body's stress response.

Norepinephrine

Norepinephrine acts as a critical chemical messenger in the nervous system, playing a key role in enhancing alertness, attention, and response to stress.

Hippocampus

A region of the brain associated with memory formation, navigation, and the emotional response.