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NEW QUESTION: 1
You are given a portfolio mean return of 15%, and a standard deviation of portfolio return is 20%, and a Sharpe ratio of 0.51. What is the risk-free rate?
A. 4.0%.
B. 4.2%.
C. 5.0%.
D. None of these answers is correct.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The Sharpe measure of risk-adjusted performance is equal to (rbar_p - rbar_f)/sigma_p, where rbar_p is the mean portfolio return, rbar_f is the mean risk-free return, and sigma_p is the standard deviation of portfolio return. In our case, we have (15% - x%) / 20% = 0.51. Solving for x, we obtain x = 0.15 - 0.51
* 0.20 = 0.15 - 0.102 = 0.048 = 4.8%.
NEW QUESTION: 2
A. Option B
B. Option D
C. Option A
D. Option C
Answer: D
NEW QUESTION: 3
Answer:
Explanation:
NEW QUESTION: 4
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A. 149-158 bpm
B. 149-165 bpm
C. 137-146 bpm
D. 115-132 bpm
Answer: C
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