A Portfolio Has an Average Return of 13

question 60

Multiple Choice

A portfolio has an average return of 13.3 percent, a standard deviation of 14.7 percent, and a beta of 1.35. The risk-free rate is 2.8 percent. What is the Sharpe ratio?

• A) .49
• B) .52
• C) .63
• D) .71
• E) .75

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Definitions:

Range

The difference between the highest and lowest values in a set of numbers.

Simplify

The process of reducing an expression to its most basic form.

Evaluate

To determine the worth of a given expression.

Simplify

To reduce a mathematical expression to its simplest form.