Portfolio a Has a Return of 5% and a Standard $A=0.3 ; B=0.5$

question 23

Multiple Choice

Portfolio A has a return of 5% and a standard deviation of 10%.Portfolio B has a return of 8% and a standard deviation of 12%.If the risk-free rate is 2% portfolio,then the Sharpe indices of A and B are:

• A) \( A=0.3 ; B=0.5 \)
• B) \( \mathrm{A}=0.25 ; \mathrm{B}=0.25 \)
• C) \( \mathrm{A}=0.35 ; \mathrm{B}=0.1 \)
• D) \( \mathrm{A}=0.5 ; \mathrm{B}=0.1 \)

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Definitions:

Chromatism

The quality or state of being chromatic, which involves the use of color or the ability to produce color, often used in the context of art and music to denote vividness and diversity in color or tone.

Still Life

A picture depicting an arrangement of inanimate objects.

Francisco de Zurbarán

A Spanish painter of the Baroque period known for his religious paintings, still lifes, and for his depictions of monks and saints.

Juan Sánchez Cotán

A Spanish Baroque painter, renowned for his pioneering and highly realistic still life paintings.