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:

National Convention

A large meeting of party delegates in the United States, held every four years to nominate presidential and vice-presidential candidates and to set the party platform.

Party's Policies

The official stances and proposed actions of a political party on various public issues.

Principles

Fundamental truths, beliefs, or propositions that serve as the foundation for a system of belief or behavior or for a chain of reasoning.

Patronage System

A political arrangement where government jobs are given based on political affiliation and loyalty rather than merit or competence.