Which of the Following Equations Is Incorrect

question 24

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:

Unreasonable Public Disclosure

The act of making public private information about an individual in a way that a reasonable person would find objectionable.

Private Facts

Information about a person that is not public knowledge and that the individual has chosen to keep private; disclosure of such information may lead to legal consequences.

Absolute

Unconditional; complete and without restrictions or limitations.

Conditional

Subject to one or more conditions or requirements being met; not absolute.