Use the Following Information to Answer the Question(s)below

question 122

Multiple Choice

Use the following information to answer the question(s) below. The volatility of the market portfolio is 10%,the expected return on the market is 12%,and the risk-free rate of interest is 4%.
-The Sharpe Ratio for Rearden Metal is closest to:

• A)0.40.
• B)0.56.
• C)0.80.
• D)1.00.

---

Definitions:

Precise Phrasing

The use of clear, explicit, and accurate language to express an idea or information without ambiguity.

Presentation Software

A computer application used to create, design, and display slideshows or multimedia presentations.

Personal Computers

Electronic devices that are used by individuals for various tasks such as word processing, internet browsing, and gaming, distinct from larger systems intended for communal use or professional data centers.

Web-Based Tool

An application or software that is accessible over the internet and helps users perform specific tasks online.