For a potential investment of $5,000, a portfolio has an EMV of $1,000 and a standard deviation of $100. What is the return to risk ratio?
A) 10
B) 20
C) 5
D) 50

Name: For a potential investment of $5,000, a portfolio has an EMV of $1,000 and a standard deviation of $100. What is the return to risk ratio? A) 10 B) 20 C) 5 D) 50
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Question

Quizplus · Accepted Answer

The return to risk ratio is calculated by dividing the expected monetary value (EMV) by the standard deviation. Here, $1,000 / $100 = 10.

For a Potential Investment of $5,000, a Portfolio Has an EMV