A Portfolio Has a Variance of

question 64

Multiple Choice

A portfolio has a variance of .017424, a beta of 1.06, and an expected return of 13.15 percent. What is the Sharpe ratio if the expected risk-free rate is 3.4 percent?

• A) .66
• B) .70
• C) .74
• D) .82
• E) .86

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Definitions:

Activities

Tasks or actions that individuals engage in, which can range from physical or mental efforts done for various purposes including recreation, employment, or health.

Repolarize

Refers to the process of restoring the electrical potential in a cell membrane to its resting state after depolarization.

Ventricles

The two lower chambers of the heart responsible for pumping blood to the lungs and the rest of the body, or cavities within the brain that produce cerebrospinal fluid.

Q-T Interval

A measurement on an electrocardiogram (EKG) that represents the time for the electrical system of the heart to depolarize and repolarize.