Exhibit 18-9
THE FOLLOWING INFORMATION IS FOR THE NEXT PROBLEM(S)

question 19

Multiple Choice

Exhibit 18-9
THE FOLLOWING INFORMATION IS FOR THE NEXT PROBLEM(S)
Consider the following information for four portfolios, the market and the risk free rate (RFR) $\begin{array}{|l|c|c|c|}\hline \text { ortfolio } & \text { Return } & \text { Beta } & \text { SD } \\\hline \text { A1 } & 0.15 & 1.25 & 0.182 \\\hline \text { A2 } & 0.1 & 0.9 & 0.223 \\\hline \text { A3 } & 0.12 & 1.1 & 0.138 \\\hline \text { A4 } & 0.08 & 0.8 & 0.125 \\\hline \text { Market } & 0.11 & 1 & 0.2 \\\hline \text { RFR } & 0.03 & 0 & 0 \\\hline\end{array}$
-Refer to Exhibit 18-9. Calculate the Sharpe Measure for each portfolio.

• A) A1 = 0.40, A2 = 0.31, A3 = 0.65, A4 = 0.66
• B) A1 = 0.31, A2 = 0.66, A3 = 0.65, A4 = 0.40
• C) A1 = 0.66, A2 = 0.65, A3 = 0.31, A4 = 0.40
• D) A1 = 0.66, A2 = 0.31, A3 = 0.65, A4 = 0.40
• E) None of the above.

Explain the role and significance of banks and financial institutions in the processing, transfer, and certification of negotiable instruments.

Describe the legal framework governing consumer fund transactions and the privacy of financial information.

Gain insights into the mechanisms for addressing disputes and errors, such as forgery or loss associated with negotiable instruments.

Understand and apply the concept of interest rates and their impact on financial formulas.