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QUESTION 29 The Panda Fund is a large cap equity fund. Assuming the risk-free rate of interest is 4%, the Panda Fund Sharpe ratio is

QUESTION 29

  1. The Panda Fund is a large cap equity fund. Assuming the risk-free rate of interest is 4%, the Panda Fund Sharpe ratio is closest to:

    a. 47%.

    b. 52.1%.

    c. 60%.

    d. 106%.

QUESTION 30

  1. Which one of the following is accurate for a purely passive investment strategy using mutual funds?

    a. It uses only index funds.

    b. It allocates assets in fixed proportions that do not vary with market conditions.

    c. It incorporates only funds with a beta of 2.0 or higher.

    d. Both a and b.

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