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

question 68

Multiple Choice

The risk free rate, average returns, standard deviations and betas for three funds and the S&P500 are given below.
-Based on the M² measure,portfolio C has a superior return of _____ as compared to the S&P500.

• A) -1.33%
• B) 1.43%
• C) 2.00%
• D) 0.00%

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Definitions:

Reseller Market

A market segment where businesses purchase products with the intention of selling them to end consumers without significant modification.

Retailers

Businesses or individuals that sell goods directly to consumers for personal use, rather than for resale or wholesale.

Wholesalers

Entities engaged in selling goods in large quantities to retailers, other merchants, or industrial, institutional, and commercial users.

North American Industry Classification System

A classification system that categorizes businesses into detailed sectors and industries, primarily to facilitate economic data analysis and reporting.