Exhibit 18-11
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 20

Multiple Choice

Exhibit 18-11
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
The last year's performance for four mutual funds is presented below. The market return was 10.70%, last year with a standard deviation of 13.1% and the risk-free rate of return was 5%. $$\begin{array} { c c c c } \text { Fund } & \text { Beta } & \begin{array} { c } \text { Standard } \\\text { Deviation (\%) }\end{array} & \text { Return (\%) } \\\hline \text { A } & 1.50 & 18.95 & 12.5 \\\text { B } & 1.20 & 12.41 & 13.0 \\\text { C } & 0.90 & 9.30 & 11.2 \\\text { D } & 0.50 & 8.10 & 9.5\end{array}$$
-Refer to Exhibit 18-11. Based on the Sharpe Measure, which portfolio preformed best?

• A) A
• B) B
• C) C
• D) D
• E) Market

---

Definitions:

Gene-Environment Interaction

The complex interplay between genetic predispositions and environmental factors and how they influence individual development and behavior.

Prefrontal Cortex

The front part of the frontal lobes of the brain, involved in decision making, problem-solving, control of purposeful behaviors, consciousness, and emotions.

Basal Ganglia

A group of structures located deep within the brain, involved in coordinating movement and to some degree, behavior and emotions.

Hippocampus

A region of the middle part of the temporal lobe involved with memory formation.