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If the Average Realized Return of a Portfolio Is 27

Question 21

Multiple Choice

If the average realized return of a portfolio is 27.5% per year, the standard deviation of returns is 50%, the portfolio beta is 1.25, the average return of Treasury bills over the same period is 2.5% per year, and the average return on the market is 12.5% per year, the Sharpe measure is


A) 0.20
B) 0.25
C) 0.50
D) 1.00

Correct Answer:

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