Which of the Following Equations Is Incorrect

question 52

Multiple Choice

Which of the following equations is incorrect?

• A) E[R_xp] = r_f + x(E[R_p] - r_f)
• B) E[R_xp] = (1 - x)r_f + xE[R_p]
• C) Sharpe ratio =
• D) SD( R_xp) = xSD(R_p)

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Definitions:

Document of Title

Legal documentation evidencing a person's right to the control or ownership of goods, typically used in the context of shipping or storage.

Risk of Loss

The potential that an investment's value may decrease, or that one may incur losses from a business transaction.

Lumber

Wood that has been processed into beams and planks, a stage in the process of wood production.

UCC

The Uniform Commercial Code, which is a comprehensive set of laws governing all commercial transactions in the United States.