A Portfolio Generates an Annual Return of 13%,a Beta of 0.7

question 12

Multiple Choice

A portfolio generates an annual return of 13%,a beta of 0.7 and a standard deviation of 17%.The market index return is 14% and has a standard deviation of 21%.What is the M² measure of the portfolio if the risk free rate is 5%?

• A) 0.58%
• B) 0.68%
• C) 0.78%
• D) 0.88%

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Definitions:

Associative Learning

Learning that involves forming connections between stimuli and behavioral responses, enabling organisms to predict outcomes based on their environment.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Long-term Potentiation

A lasting enhancement in signal transmission between two neurons resulting from their simultaneous stimulation, often considered a cellular mechanism for learning and memory.

Synaptic Connections

The points at which nerve cells (neurons) connect and communicate with each other through neurotransmitters.