Portfolio a Has a Return of 9% and a Standard $A=0.1 ; B=0.5$

question 16

Multiple Choice

Portfolio A has a return of 9% and a standard deviation of 25%.Portfolio B has a return of 21% and a standard deviation of 33%.If the risk-free rate is 6% portfolio,then the Sharpe indices of A and B are:

• A) \( A=0.1 ; B=0.5 \)
• B) \( \mathrm{A}=0.12 ; \mathrm{B}=0.45 \)
• C) \( A=0.12 ; B=0.5 \)
• D) \( A=0.5 ; B=0.12 \)

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Definitions:

Direct Material Quantity Variance

The difference between the actual quantity of direct material used and the expected quantity, multiplied by the standard cost per unit.

Actual Production

The real quantity of goods or services produced during a specific period, as opposed to planned or theoretical outputs.

Standard Costing

A management accounting method that uses standard costs for direct materials, labor, and overhead to control expenses and assess performance.

Organisational Performance

Organisational Performance refers to how well an organization achieves its predetermined objectives, encompassing efficiency, effectiveness, and financial performance.