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:

Negative Habits

Repetitive behaviors that are detrimental to one's physical, emotional, or mental well-being.

Perception

The process by which individuals organize and interpret their sensory information to give meaning to their environment.

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Pertaining to or dealing with morals or the principles of morality; adhering to accepted standards of right and wrong behavior.

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A health professional who specializes in food and nutrition, helping individuals make informed choices about their eating habits for better health.