A Portfolio Generates an Annual Return of 17%,a Beta of 1.2

question 23

Multiple Choice

A portfolio generates an annual return of 17%,a beta of 1.2 and a standard deviation of 19%.The market index return is 12% and has a standard deviation of 16%.What is the M² measure of the portfolio if the risk free rate is 4%?

• A) 2.15%
• B) 2.76%
• C) 2.94%
• D) 3.14%

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Definitions:

Market Segments

Groups of potential customers with similar needs, wants, and characteristics that a company targets with its products or services.

Deep Discounts

Significant reductions in price offered to consumers, often to clear inventory or boost sales temporarily.

Monopolist

A single supplier in a market who has exclusive control over a product or service, often resulting in limited competition.

Comcast

An American telecommunications conglomerate that is one of the world's largest broadcasting and cable television companies.