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TABLE 17-4
a Stock Portfolio Has the Following Returns Under

Question 11

Multiple Choice

TABLE 17-4
A stock portfolio has the following returns under the market conditions listed below.
 Market Condition  Probability  Return  Bull 0.4$200 Stable 0.3$100 Bear 0.3$100\begin{array} { c c c } \text { Market Condition } & \text { Probability } & \text { Return } \\\hline \text { Bull } & 0.4 & \$ 200 \\\text { Stable } & 0.3 & \$ 100 \\\text { Bear } & 0.3 & - \$ 100\end{array}
-Referring to Table 17-4, what is the return to risk ratio?


A) 0.64
B) 1.18
C) 1.08
D) 2.00

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