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:

Spearman Correlation

A non-parametric measure of rank correlation that assesses how well the relationship between two variables can be described using a monotonic function.

Data Ranks

A method of placing data elements in ascending or descending order, based on their value or position in a distribution.

Likert Scale

A psychometric scale commonly involved in research that utilizes questionnaires, designed to measure attitudes or opinions with a range of fixed responses.

Quality Of Service

A measure of the overall performance of a service or product, especially in the context of telecommunication and computing.