The Following Table Summarizes Selected Statistics for Two Portfolios for a 10-Year

question 29

Multiple Choice

The following table summarizes selected statistics for two portfolios for a 10-year period. Assume that the risk-free rate is 4% over this period. As measured by the Sharpe ratio, the fund with the superior risk-adjusted performance during this period is ________.

• A) Fund A because it has a lower positive Sharpe ratio than Fund B
• B) Fund B because it has a lower positive Sharpe ratio than Fund A
• C) Fund A because it has a higher positive Sharpe ratio than Fund B
• D) Fund B because it has a higher positive Sharpe ratio than Fund A

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Definitions:

Infinite Recursion

A situation in which a function or method calls itself without an exit condition, leading to a stack overflow error.

Base Case

In recursive programming, a condition that stops the recursion by not making any further calls.

Recursive Methods

Functions or methods in programming that solve problems by calling themselves with modified arguments, often with a base case to end the recursion.

Stopping Case

A condition used to terminate a recursive function, preventing it from running indefinitely.