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:

FMV

Fair Market Value, the price that a property or asset would sell for on the open market between a willing buyer and a willing seller.

Basis

The financial value assigned to an asset for tax purposes, used to determine the gain or loss upon its sale or other disposition.

Divorce

The legal dissolution of a marriage by a court or other competent body, often involving division of assets and debts.

Investment

An investment is an asset or item acquired with the goal of generating income or appreciation over time.