To Increase the Sharpe Ratio for a Portfolio,an Investor Would

question 17

Multiple Choice

To increase the Sharpe ratio for a portfolio,an investor would have to add which one of the following?

• A) stocks that increase expected return of the portfolio
• B) stocks that decrease expected return of the portfolio
• C) stocks that increase the volatility of the portfolio
• D) stocks that increase the correlation with other stocks in the portfolio

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Definitions:

Carries Blood

Refers to vessels in the cardiovascular system, such as arteries, veins, and capillaries, that transport blood throughout the body.

Leader Behavior Description Questionnaire

A tool used to assess the behaviors and characteristics of leaders by gathering observations from subordinates.

Autocratic

A leadership style characterized by individual control over all decisions and little input from group members; often associated with authoritative decision-making.

Trait

A distinguishing characteristic, such as a habit, manner, or peculiarity. Trait theory in leadership focuses on qualities that mark a leader, such as intelligence, integrity, and energy.