The Risk-Free Rate, Average Returns, Standard Deviations and Betas for Three

question 11

Multiple Choice

The risk-free rate, average returns, standard deviations and betas for three funds and the S&P500 are given below. What is the T² measure for Portfolio A?

• A)12.4%
• B)2.38%
• C)0.91%
• D)3.64%

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Definitions:

Empirical Evidence

Information acquired by observation or experimentation that is used to confirm or disprove a hypothesis or theory.

Homosexuality

A sexual orientation characterized by a romantic or sexual attraction to people of one's own sex.

Identical Twin

A twin that originates from the same fertilized egg, sharing 100% of their DNA, and typically having very similar physical traits.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.