The Expected Return on the Market Is 12 Percent with a Standard

question 27

Multiple Choice

The expected return on the market is 12 percent with a standard deviation of 20 percent.The risk-free rate is 4.5 percent.What is the Sharpe ratio of a portfolio with an expected return of 10.5 percent and a standard deviation of 12 percent?

• A) 0.38
• B) 0.50
• C) 0.70
• D) 0.88

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Definitions:

Categorical Propositions

Statements that assert or deny that all or some of the members of one category are included in another.

Copula

A linking verb in a sentence, often a form of "to be", connecting the subject to a subject complement.

Non-categorical

Pertains to statements or propositions that do not fit neatly into predefined categories or classifications.

Copula

A verb used to link the subject of a sentence with a predicate (a subject complement), such as the verb "to be."