A Portfolio Has a Beta of 1

question 84

Multiple Choice

A portfolio has a beta of 1.16,a standard deviation of 12.2 percent,and an expected return of 11.55 percent.The market return is 10.4 percent and the risk-free rate is 3.2 percent.What is the portfolio's Sharpe ratio?

• A).57
• B).68
• C).73
• D).77
• E).85

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Definitions:

Depression

A common but serious mood disorder that affects how one feels, thinks, and manages daily activities.

Implementation Intention

A self-regulatory strategy in the form of an "if-then plan" that can lead to better goal attainment, as well as help in habit and behavior formation.

Goal-Directed Behaviors

Actions taken with the intention of achieving a specific outcome or target.

Ego Depletion

A theory suggesting that self-control or willpower draws upon a limited pool of mental resources that can be temporarily exhausted.