USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 12

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The last year's performance for four mutual funds is presented below. The market return was 10.70 percent, the standard deviation was 13.1 percent last year, and the risk-free rate of return was 5%.

-Refer to Exhibit 18.7. Based on the Sharpe Measure, which portfolio preformed best?

• A) A
• B) B
• C) C
• D) D
• E) market

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Definitions:

Fate

A predetermined course of events often considered inevitable or outside human control.

Risk-taking Propensity

An individual's tendency or willingness to take risks or engage in behaviors that could lead to significant gains or losses.

Personality

The unique and individual differences in patterns of thinking, feeling, and behaving that characterizes a person.

Engage

To participate or become involved in an activity or interaction.