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

question 43

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 Sharpe measure of the portfolio if the risk free rate is 5%?

• A) .3978
• B) .4158
• C) .4563
• D) .4706

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Definitions:

Malformations

Physical or structural abnormalities that deviate from the normal development or formation, often present from birth.

Temperament Categories

Classifications that describe the inherent personality traits of individuals, often based on their emotional and behavioral tendencies.

Difficult Temperament

A behavioral profile in infancy characterized by high levels of negative mood, high activity, and poor adaptation to new situations.

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A temperament characterised by regularity, adaptability, and a positive mood.