Portfolio a Has a Return of 41% and a Standard $\mathrm{A}=1.5 ; \mathrm{B}=1.85$

question 7

Multiple Choice

Portfolio A has a return of 41% and a standard deviation of 25%.Portfolio B has a return of 21% and a standard deviation of 6%.If the risk-free rate is 4% portfolio,then the Sharpe indices of A and B are:

• A) \( \mathrm{A}=1.5 ; \mathrm{B}=1.85 \)
• B) \( A=3.08 ; B=1.85 \)
• C) \( A=3.08 ; B=2.5 \)
• D) \( \mathrm{A}=4.51 ; \mathrm{B}=3.12 \)

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Definitions:

Cost Control

The practice of managing and reducing business expenses through efficient and effective resource allocation.

Modern Cost Management

An approach to cost management that incorporates advanced techniques and technologies to analyze and optimize costs across various business activities.

Machining Process

A manufacturing process involving the shaping of metal and other materials through cutting, boring, grinding, or drilling.

Assembling Process

The phase in manufacturing where components are put together to form a finished product.