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

question 2

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 M² measure for portfolio B?

• A) 0.43%
• B) 1.25%
• C) 1.77%
• D) 1.43%

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Definitions:

Compromise

A solution to a conflict or problem where all parties involved agree to concessions to reach a mutual agreement.

Confrontation

A direct encounter between individuals or groups characterized by a clash of opinions, beliefs, or interests, often used in therapeutic contexts to address issues.

Sublimation

A defense mechanism in psychoanalytic theory where socially unacceptable impulses or idealizations are unconsciously transformed into socially acceptable actions or behavior.

Displacement

In psychology, a defense mechanism where an individual shifts negative feelings or behaviors from the original source to a safer or more accessible target.