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A Portfolio Has a Beta of 1

Question 51

Multiple Choice

A portfolio has a beta of 1.16,a standard deviation of 12.2 percent,and an expected return of 11.55 percent.The market return is 10.4 percent and the risk-free rate is 3.2 percent.What is the portfolio's Sharpe ratio?


A) 0.57
B) 0.68
C) 0.73
D) 0.77
E) 0.85

Correct Answer:

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