The expected return of a portfolio is 8.9%, and the risk-free rate is 3.5%. If the portfolio standard deviation is 12%, what is the reward-to-variability ratio of the portfolio?
A) 0
B) .45
C) .74
D) 1.35

Name: The expected return of a portfolio is 8.9%, and the risk-free rate is 3.5%. If the portfolio standard deviation is 12%, what is the reward-to-variability ratio of the portfolio? A) 0 B) .45 C) .74 D) 1.35
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Question

Quizplus · Accepted Answer

Reward-to-variability ratio = (.089 - .035)/.12 = .45

The Expected Return of a Portfolio Is 8