[Solved] Allison's Portfolio Has an Expected Return of 14% and a Standard

Question 8
Multiple Choice

Allison's portfolio has an expected return of 14% and a standard deviation of of 20%. Brianna's portfolio has an expected rate of return of 11% and a standard deviation of 12%. The risk- free rate is 3%. According to the Sharpe measure,

A) Brianna has the better portfolio.
B) The answer depends on Allison and Brianna's risk tolerance.
C) Allison has the better portfolio.
D) The portfolio's are equally desirable.

10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes.

Business

Explore our library and get Finance Homework Help with various study sets and a huge amount of quizzes and questions

3.5K

Study sets

66.5K

Quizzes

5.9M

Questions

Upload material to get free access

Upload Now Upload Now
Upload Now

Invite a friend and get free access

Upload NowInvite a friend
Invite a friend

Subscribe and get an instant access

See our plansSee our plans
See our plans