Question
Consider the following data for following investments, asset A, B, C, and D: Asset Expected Returns Std Dev (Risk) Investment A: 10% 8% Investment B:
Consider the following data for following investments, asset A, B, C, and D:
Asset | Expected Returns | Std Dev (Risk) |
Investment A: | 10% | 8% |
Investment B: | 9% | 6% |
Investment C: | 6% | 5% |
Investment D: | 13% | 6% |
Which investment provides the highest return?
a. | Investment D | |
b. | Investment B | |
c. | Investment A | |
d. | Investment C | |
e. | None of the above |
Consider the following data for following investments, asset A, B, C, and D:
Asset | Expected Returns | Std Dev (Risk) |
Investment A: | 10% | 8% |
Investment B: | 9% | 6% |
Investment C: | 6% | 5% |
Investment D: | 13% | 6% |
Which investment provides the least risk?
a. | Investment B | |
b. | Investment D | |
c. | Investment A | |
d. | Investment C | |
e. | None of the above |
Consider the following data for following investments, asset A, B, C, and D:
Asset | Expected Returns | Std Dev (Risk) |
Investment A: | 10% | 8% |
Investment B: | 9% | 6% |
Investment C: | 6% | 5% |
Investment D: | 13% | 6% |
Given a risk-free rate of 1.85%, the Sharpe ratio for investment A,B, C and D is:
a. | 1.0900, 1.3500, 3.2900 and 1.1450 respectively | |
b. | 1.0188, 1.1917, 0.8300 and 1.8583 respectively | |
c. | 1.2417, 1.3500, 1.6056 and 1.3450 respectively | |
d. | 0.7746, 0.3416, 0.2838 and 0.8593 respectively | |
e. | 0.5230, 2.0195, 1.0409 and 0.2040 respectively |
Consider the following data for following investments, asset A, B, C, and D:
Asset | Expected Returns | Std Dev (Risk) |
Investment A: | 10% | 8% |
Investment B: | 9% | 6% |
Investment C: | 6% | 5% |
Investment D: | 13% | 6% |
Which investment has performed better in terms of reward per unit of risk?
a. | Investment B | |
b. | Investment C | |
c. | Investment A | |
d. | Investment D | |
e. | None of the above |
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