Question: 1. A portfolio with a 25% standard deviation generated a return of 17% last year when T-bills were paying 7.5%. This portfolio had a Sharpe

1. A portfolio with a 25% standard deviation generated a return of 17% last year when T-bills were paying 7.5%. This portfolio had a Sharpe ratio of __________.

a. 0.63

b. 0.25

c. 0.38

d. 0.21

2. An investment earns 30% the first year, earns 38% the second year, and loses 35% the third year. The total compound return over the 3 years was __________.

a. 142.19%

b. 16.61%

c. 33.00%

d. 5.54%

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