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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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