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:

Negative Correlation

A relationship between two variables where one variable increases as the other decreases, or vice versa.

Food Intake

The consumption of nutrition and calories through eating and drinking; an essential aspect of maintaining energy and health.

Hunger

The physical sensation or condition of wanting or needing to eat food.

Nurture

Refers to the environmental influences and factors that affect an individual's physical and psychological development.