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

---

Definitions:

Sensitization

An increased reaction to a stimulus following repeated exposures, leading to a heightened response.

Habituation

The process where an organism becomes less responsive to a stimulus after repeated exposure.

Behavioral Contrast

A phenomenon where the rate of response varies according to the reinforcement conditions of another behavior.

Sensitization

An increased response to a stimulus following repeated exposures to it.