The Expected Return of Portfolio Is 8

question 34

Multiple Choice

The expected return of portfolio is 8.9% and the risk free rate is 3.5%.If the portfolio standard deviation is 12.0%,what is the reward to variability ratio of the portfolio?

• A) 0.0
• B) 0.45
• C) 0.74
• D) 1.35

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Definitions:

Formal Operations

The stage in Piaget's theory of cognitive development where individuals are able to think abstractly and reason logically.

Concrete Operations

A stage in Piaget's theory of cognitive development where children gain the ability to think logically about physical objects and events.

Sensorimotor

Pertaining to the development phase where an infant's understanding of the world is based on sensory experiences and the motor actions they perform.

Preoperational

A developmental stage in Piaget's theory of cognitive development, roughly ages 2 to 7, characterized by symbolic thought and egocentrism, but a lack of logical operations.