Use the Table for the Question(s)below

question 66

Multiple Choice

Use the table for the question(s) below.
Consider the following expected returns,volatilities,and correlations:
-Which of the following statements is FALSE?

• A)The Sharpe ratio measures the ratio of volatility-to-reward provided by a portfolio.
• B)Borrowing money to invest in stocks is referred to as buying stocks on margin.
• C)The Sharpe ratio is the number of stand deviations the portfolio's return would have to fall to under-perform the risk-free investment.
• D)The slope of the line through a given portfolio is often referred to as the Sharpe ratio of the portfolio.

---

Definitions:

Economic Entity

A unit such as a company or organization that performs economic activities and is capable of possessing assets, incurring liabilities, and conducting business transactions.

Direct Ownership Interest

A situation where an individual or entity directly owns shares or stakes in a company, allowing for direct control or influence over the company.

Ownership Interest

A share or stake denoting possession or control in a company, allowing the holder certain rights and privileges.

Indirect Non-Controlling Interest

A non-controlling interest that a parent company has in a subsidiary through another subsidiary or subsidiaries, complicating the calculation of ownership percentages.