A Portfolio with a Beta of 0

question 17

Multiple Choice

A portfolio with a beta of 0.9 has an expected return of 11 percent and a standard deviation of 24 percent. The expected return of the market is 12 percent, and the risk-free is 5 percent. What is the Sharpe ratio for the portfolio?

• A) 0.25
• B) 0.16
• C) 0.29
• D) 0.34
• E) 0.21

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Definitions:

Behavioral Outcomes

The observable and measurable changes in behavior that result from various interventions, treatments, or learning processes.

Suicide Precautions

Measures implemented to prevent an individual from taking their own life, often involving close supervision and the removal of harmful objects.

Self-esteem

An individual's subjective evaluation of their own worth or value.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome.