Use the Table for the Question(s)below

question 66

Multiple Choice

Use the table for the question(s) below.
Consider the following expected returns,volatilities,and correlations:
-Which of the following statements is FALSE?

• A)The Sharpe ratio measures the ratio of volatility-to-reward provided by a portfolio.
• B)Borrowing money to invest in stocks is referred to as buying stocks on margin.
• C)The Sharpe ratio is the number of stand deviations the portfolio's return would have to fall to under-perform the risk-free investment.
• D)The slope of the line through a given portfolio is often referred to as the Sharpe ratio of the portfolio.

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Definitions:

Coordinated Series

A sequence of elements, events, or activities that are planned or occur in a mutually supportive manner.

Intuitive Appeal

The natural attractiveness or persuasiveness of an idea or product based on its apparent simplicity or the ease with which it can be understood and appreciated.

Fortune 500

An annual list that ranks the 500 largest United States corporations by total revenue for their respective fiscal years.

Nonprofit Organizations

Entities that operate for the collective, public, or social benefit, rather than to make money for owners or investors.