Use the Following Information to Answer the Question(s)below

question 113

Multiple Choice

Use the following information to answer the question(s) below.
Suppose that all stocks can be grouped into two mutually exclusive portfolios (with each stock appearing in only one portfolio) : growth stocks and value stocks.Assume that these two portfolios are equal in size (market value) ,the correlation of their returns is equal to 0.6,and the portfolios have the following characteristics: The risk-free rate is 3.5%.
-The Sharpe ratio for the value stock portfolio is closest to:

• A).53.
• B).58.
• C).61.
• D).79.

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Definitions:

State-dependent Learning

A phenomenon where information learned in a particular state of mind is more easily recalled when in the same state.

Self-hypnosis

A technique involving self-induced hypnotic state, often used for therapeutic purposes, stress relief, or personal development.

Dissociative Identity Disorder

A mental disorder characterized by the presence of two or more distinct personality states that control an individual's behavior in different circumstances.

Subpersonalities

Different elements of an individual's personality that may become dominant in different contexts or during various emotional states.