The Table Below Gives Statistics Relating to a Hypothetical 10-Year

question 1

Multiple Choice

The table below gives statistics relating to a hypothetical 10-year record of two portfolios.Assume other statistics relating to these portfolios are the same and the risk-free rate is 3.5%.Using the coefficient of variation and the Sharpe ratio,the fund that is preferred in terms of relative risk and return per unit of risk is

• A)Portfolio A since it has a higher coefficient of variation and a lower Sharpe ratio.
• B)Portfolio A since it has a lower coefficient of variation and a higher Sharpe ratio.
• C)Portfolio B since it has a higher coefficient of variation and a lower Sharpe ratio.
• D)Portfolio B since it has a lower coefficient of variation and a higher Sharper ratio.

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Definitions:

Stereotypic Inferences

Involve drawing broad, oversimplified conclusions about individuals based on their membership in certain groups, often ignoring personal differences.

Salience of Group Membership

The degree to which an individual's affiliation with a group is prominent and affects their behavior and perceptions.

Social Markers

Visible or tangible indicators used to infer or assume an individual's social status, group membership, or identity.

Ethnic Identity

The sense of belonging to a specific ethnic group, incorporating aspects such as common language, culture, and traditions.