Question 30 Fund A has an expected return of 9.5%, a standard deviation of 15.6% and a beta of 0.95. Fund B has an expected return of 11.5%, a standard deviation of 17.8% and a beta of 1.10. The S&P 500 index has an expected return of 10.5%, a standard deviation of 16.2% and a beta of 1.00. The T-bill has an expected return of 4.5% Which of the funds has a Sharpes Ratio that is better than the markets ratio? Fund A Fund B Both Fund A and Fund B Neither Fund A or Fund B Question 31 Fund A has an expected return of 9.5%, a standard deviation of 15.6% and a beta of 0.95. Fund B has an expected return of 11.5%, a standard deviation of 17.8% and a beta of 1.10. The S&P 500 index has an expected return of 10.5%, a standard deviation of 16.2% and a beta of 1.00. The T-bill has an expected return of 4.5% Which of the funds has an alpha that will plot above the Security Market Line? Fund A Fund B Both Fund A and Fund B Neither Fund A or Fund B Question 32 Fund A has an expected return of 11.4%, a standard deviation of 18.2% and a beta of 1.05. Fund B has an expected return of 12.1%, a standard deviation of 17.8% and a beta of 1.11. Fund C has an expected return of 10.9%, a standard deviation of 16.8% and a beta of 0.90. Fund D has an expected return of 10.75%, a standard deviation of 19.1% and a beta of 0.92. The S&P 500 index has an expected return of 11.5%, a standard deviation of 16.2% and a beta of 1.00. The T-bill has an expected return of 4.5% Which of the following funds is has the least desirable Sharpes Ratio? Fund A Fund B Fund C Fund D Question 33 Fund A has an expected return of 11.4%, a standard deviation of 18.2% and a beta of 1.05. Fund B has an expected return of 12.1%, a standard deviation of 17.8% and a beta of 1.11. Fund C has an expected return of 10.9%, a standard deviation of 16.8% and a beta of 0.90. Fund D has an expected return of 10.75%, a standard deviation of 19.1% and a beta of 0.92. The S&P 500 index has an expected return of 11.5%, a standard deviation of 16.2% and a beta of 1.00. The T-bill has an expected return of 4.5% Which of the following funds is has the most desirable Sharpes Ratio? Fund A Fund B Fund C Fund D Question 34 Fund A has an expected return of 11.4%, a standard deviation of 18.2% and a beta of 1.05. Fund B has an expected return of 12.1%, a standard deviation of 17.8% and a beta of 1.11. Fund C has an expected return of 10.9%, a standard deviation of 16.8% and a beta of 0.90. Fund D has an expected return of 10.75%, a standard deviation of 19.1% and a beta of 0.92. The S&P 500 index has an expected return of 11.5%, a standard deviation of 16.2% and a beta of 1.00. The T-bill has an expected return of 4.5% Which of the following funds has a negative alpha? A, B, C, D A, B, D B, C C