A Portfolio Has a Standard Deviation of 14

question 17

Multiple Choice

A portfolio has a standard deviation of 14.1 percent,a beta of 1.30 and a Treynor ratio of .094.The risk-free rate is 3.2 percent.What is the portfolio's expected rate of return?

• A)14.83 percent
• B)15.25 percent
• C)15.42 percent
• D)16.41 percent
• E)16.56 percent

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Definitions:

Formal Parameters

Formal parameters refer to the variables named in the method definition. They are used to accept values when the method is called.

Default Constructor

A constructor provided by Java that takes no arguments, used when no explicit constructors are defined in a class.

This Parameter

A reference within an object method to the current object.

Java Method

A block of code defined within a class that performs a specific task and can be executed when called upon.