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Which of the Following Equations Is INCORRECT

Question 72

Multiple Choice

Which of the following equations is INCORRECT?


A) E[Rxp] = rf + x(E[Rp] - rf)
B) E[Rxp] = (1 - x) rf + xE[Rp]
C) Sharpe ratio = Which of the following equations is INCORRECT? A) E[R<sub>xp</sub>] = r<sub>f</sub> + x(E[R<sub>p</sub>] - r<sub>f</sub>) B) E[R<sub>xp</sub>] = (1 - x) r<sub>f</sub> + xE[R<sub>p</sub>] C) Sharpe ratio = D) SD( R<sub>xp</sub>) = xSD(R<sub>p</sub>)
D) SD( Rxp) = xSD(Rp)

Correct Answer:

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