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:

Consumer Goods

Products manufactured and bought to satisfy personal or household needs and wants, such as clothing, food, and electronics.

Easily Accessible

Something that can be reached or obtained with little effort or difficulty, often used in the context of information, locations, or services.

High-Grade Mineral

Minerals that contain a high percentage of a desired material, making them economically feasible to mine.

Economically Depleted

Refers to a condition where a resource has been exploited to the point where it is no longer profitable to extract or use.