The Risk Free Rate, Average Returns, Standard Deviations and Betas

question 56

Multiple Choice

The risk free rate, average returns, standard deviations and betas for three funds and the S&P500 are given below.
-What is the T² measure for portfolio A?

• A) 12.4%
• B) 2.38%
• C) 0.91%
• D) 3.64%

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Definitions:

Relative Frequency

The ratio of the number of times an event occurs to the total number of trials or observations.

Subjective

Rooted in or swayed by one's own emotions, preferences, or views.

Equity Loan

A type of loan in which the borrower uses the equity of their property as collateral.

Interest Rate

The amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.