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

question 100

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

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Definitions:

Acute Febrile Illnesses

Refers to rapidly developing diseases characterized by an increase in body temperature, often indicative of an underlying infection or inflammatory process.

Inactivated Vaccine

A type of vaccine made from virus particles, bacteria, or other pathogens that have been killed or altered so they cannot cause disease.

Closed Suction Device

A medical apparatus used to remove secretions and fluids from airways or wounds by suction, without the need to disconnect from the ventilator circuit, reducing the risk of contamination.

Mechanical Ventilation

involves the use of machines to assist or replace spontaneous breathing, critical in patients unable to breathe independently.