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Ella Owns a Stock with a Beta of 1

Question 46

Multiple Choice

Ella owns a stock with a beta of 1.34 and a standard deviation of 16.4%. The stock has a total return of 14.8%. The market risk premium is 8.5%, while the return on the market portfolio was 12.0%. What is the value of Sharpe's measure for Ella's portfolio?


A) 0.21
B) 0.38
C) 0.69
D) 0.90

Correct Answer:

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