Use the Information for the Question(s)below

question 34

Multiple Choice

Use the information for the question(s) below.
Suppose that you currently have $250,000 invested in a portfolio with an expected return of 12% and a volatility of 10%.The efficient (tangent) portfolio has an expected return of 17% and a volatility of 12%.The risk-free rate of interest is 5%.
-The Sharpe ratio for the efficient portfolio is closest to:

• A)0.7.
• B)1.0.
• C)1.4.
• D)1.2.

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Definitions:

Converse

In logic, a statement formed by reversing the antecedent and consequent in a conditional statement; if the original statement is "If P, then Q," the converse is "If Q, then P."

Proposition

A pronouncement that exhibits a view or judgment.

Converse

In logic, the converse of a statement is formed by swapping the hypothesis and conclusion of the original statement.

Proposition

A proclamation or assertion signaling an assessment or belief.