Portfolio a Has a Return of 8% and a Standard

question 27

True/False

Portfolio A has a return of 8% and a standard deviation of 10%.Portfolio B has a return of 12% and a standard deviation of 15%.If the risk-free rate is 4%,portfolio A has the highest Sharpe index.

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Definitions:

Cognitive Therapy

A form of psychotherapy that emphasizes the role of thought patterns and beliefs in influencing behavior and emotions, aiming to change cognitive distortions and maladaptive thinking to improve mental health.

Self-help Groups

Peer-led organizations where members share common experiences, challenges, or conditions to provide mutual support and aid.

Eating Disorders

Psychological disorders characterized by abnormal or disturbed eating habits that negatively affect a person's health and well-being.

Coping Effectively

The ability to manage stressful situations or challenges in a healthy manner that reduces negative emotional impact and promotes well-being.