A Portfolio Generates an Annual Return of 13%,a Beta of 0.7

question 43

Multiple Choice

A portfolio generates an annual return of 13%,a beta of 0.7 and a standard deviation of 17%.The market index return is 14% and has a standard deviation of 21%.What is the Sharpe measure of the portfolio if the risk free rate is 5%?

• A) .3978
• B) .4158
• C) .4563
• D) .4706

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Definitions:

Evolutionary Psychological Perspectives

Evolutionary Psychological Perspectives offer explanations for mental and psychological traits as adaptations, that is, as the functional products of natural selection.

Evolutionary Psychology

An approach in both natural and social sciences that analyzes psychological structures through the lens of contemporary evolutionary theories.

Attachment Theory

A psychological, evolutionary, and ethological theory concerning relationships between humans, particularly long-term relationships between parents and children.

Ainsworth's Strange Situation

A procedure developed by Mary Ainsworth in the 1970s to assess patterns of attachment in young children through observations of their behavior when separated and reunited with their caregiver.