Portfolio a Has Had an Average Quarterly Return of 4

question 41

Multiple Choice

Portfolio A has had an average quarterly return of 4.7% and a beta of 1.4. The average risk free return has been 2.6%. The reward-to-volatility ratio value is

• A) 1.27.
• B) .67.
• C) 1.5.
• D) 1.76.

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Definitions:

Due Process

A fundamental principle of fairness in all legal matters, both civil and criminal, especially in the courts, guaranteeing the right to a fair trial and due process of law.

Fifth Amendment

An amendment to the U.S. Constitution that guarantees several rights related to legal proceedings, including protection against self-incrimination and double jeopardy, and ensures due process.

Federal Government

The national government of a federation, responsible for governing the entire country.

Strict Scrutiny

A rigorous standard of judicial review used to determine the constitutionality of laws that potentially violate fundamental rights.