The Mean and Standard Deviation (SD)of Monthly Returns,over a Given

question 1

Multiple Choice

The mean and standard deviation (SD) of monthly returns,over a given period of time,for the stock markets of two countries,X and Y are Assuming that the monthly risk-free interest rate is 0.25%,t he Sharpe performance measures,SHP(X) and SHP(Y) ,and the performance ranks,respectively,for X and Y are:

• A)SHP(
• X) = 0.271, rank = 1, and SHP(
• Y) = 0.219, rank = 2
• B)SHP(
• X) = 0.271, rank = 2, and SHP(
• Y) = 0.219, rank = 1
• C)SHP(
• X) = 18.84, rank = 1, and SHP(
• Y) = 23.04, rank = 2
• D)SHP(
• X) = 23.04, rank = 2, and SHP(
• Y) = 18.84, rank = 1

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Definitions:

Current Liabilities

Short-term financial obligations that are due to be paid within one year or within the business's operating cycle.