For a potential investment of $5,000,a portfolio has an expected monetary value (EMV)of $1,000 and a standard deviation of $100.The return to risk ratio (RTRR)is _______.
A) 5
B) 10
C) 20
D) 50

Question

For a potential investment of $5,000,a portfolio has an expected monetary value (EMV)of $1,000 and a standard deviation of $100.The return to risk ratio (RTRR)is  _______.
A) 5
B) 10
C) 20
D) 50

Quizplus · Accepted Answer

The return to risk ratio (RTRR) is calculated by dividing the expected monetary value (EMV) by the standard deviation. 
RTRR= EMV/Standard Deviation = 1000/100= 10. 
Since the RTRR for this portfolio is 10, it is a good investment option for the given risk and return.

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