QUESTION 19

1. Active managers in contrast with passive portfolios attempt to construct risky portfolios with securities that have:

   		a. A higher Sharpe ratio than an index fund.
   		b. A lower Sharpe ratio than an index fund.
   		c. The same Sharpe ratio as an index fund.
   		d. A Sharpe ratio greater than 1.0.

QUESTION 20

1. What does standard deviation measure?

   		a. Unsystematic Risk.
   		b. Systematic Risk.
   		c. Equity Risk Premium.
   		d. Total Risk.