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:

Organic Organizations

Flexible, adaptable corporate structures with a decentralized approach to management and open communication channels.

Formal Rules

Are the officially sanctioned guidelines and procedures that govern behavior and processes in organizations.

Broadly Defined

Describing concepts or categories in a wide and inclusive manner, often lacking in specific detail.

Decentralized

A system or organization where decision-making powers are distributed among various levels rather than being concentrated at a central point.