USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 50

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Jonathan Crowley is a portfolio manager for a large pension fund. Last year his portfolio had an actual return of 12.6 percent with a standard deviation of 13 percent and a beta of 1.3. The market risk premium for this period of time was 6 percent, and the risk-free rate of return was 5 percent.
-Refer to Exhibit 7.6. How does Jonathan Crowley's portfolio compare to the market portfolio?

• A) Crowley's portfolio is less risky than the market portfolio.
• B) Crowley's portfolio significantly outperformed the market portfolio.
• C) On a risk-adjusted basis Crowley's portfolio performed similar to the market portfolio.
• D) On a risk-adjusted basis Crowley's portfolio significantly underperformed the market.
• E) On a risk-adjusted basis Crowley's portfolio significantly outperformed the market.

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Definitions:

Lymphatic Organ

Structures part of the lymphatic system, such as lymph nodes, spleen, and thymus, that help defend the body against disease.

RBCs

stands for Red Blood Cells, which are cells in the blood that transport oxygen from the lungs to body tissues and carry carbon dioxide back to the lungs for exhalation.

Phagocytic Cells

Cells that have the ability to engulf and absorb bacteria, other foreign particles, and sometimes dead cells, as part of the immune response.

Monokines

A subset of cytokines, which are proteins secreted by immune cells that impact the behavior of other cells, typically involved in inflammatory and immune responses.