Portfolio C Has a Reward-To-Volatility Ratio of 1

question 15

Multiple Choice

Portfolio C has a reward-to-volatility ratio of 1.8. For the same period, the average market return was 3.2% and the average riskfree return was 2%. The comparison is

• A) the slope of the SML is 1.2 and Portfolio C had an inferior performance.
• B) there is no standard to determine Portfolio C's performance.
• C) the slope of the SML is 1.2 and Portfolio C had a superior performance.
• D) the slope of the SML is 1.6 and Portfolio C had an inferior performance.

---

Definitions:

Rhinorrhea

The medical term for a runny nose, indicating the excessive discharge of mucus from the nasal passages.

Otoscopic Examination

A medical procedure using an otoscope to inspect the external auditory canal and tympanic membrane of the ear.

Pinna

The outer part of the ear, made of cartilage and skin, which functions in capturing sound waves and directing them into the ear canal.

Indurated Base

Describes the firm or hardened area at the base of a skin lesion, which can be indicative of underlying disease or infection.