The Mean and Standard Deviation (SD) of Monthly Returns, Over

question 90

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%, the 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:

Extended Problem Solving

A consumer decision-making process used for complex and high-involvement purchases requiring significant thought and research.

Routine Response Behavior

Consumer behavior characterized by frequent, habitual purchases where little thought, search, or comparison is involved.

Limited Problem Solving

A decision-making approach used by consumers when purchasing products that involve a moderate level of engagement and research.

Low-involvement Purchase

A buying decision that is made with minimal research and consideration due to the low cost or risk involved in the purchase.