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:

Note Payable

A written promise to pay a specific sum of money, on demand or at a set time, to the holder of the note.

Maturity Value

The amount that will be paid to the holder of a financial instrument at its maturity date, including principal and any remaining interest.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its interest payments on outstanding debt.

Operating Expenses

The ongoing costs for running a business, excluding the cost of goods sold, such as rent, utilities, and salaries.