If a Portfolio Had a Return of 8%, the Risk-Free

question 72

Multiple Choice

If a portfolio had a return of 8%, the risk-free asset return was 3%, and the standard deviation of the portfolio's excess returns was 20%, the Sharpe measure would be

• A) 0.08.
• B) 0.03.
• C) 0.20.
• D) 0.11.
• E) 0.25.

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Definitions:

Crop Of Tomatoes

The product yield from cultivating tomatoes over a certain period or area.

Transaction

The exchange of goods, services, or funds between two or more parties, forming the basis of economic activity.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the amount they actually receive, showcasing producer gains.

Lawn Maintenance

The ongoing care and upkeep of a grassy area, typically involving mowing, fertilization, weed control, and irrigation.