Question: A portfolio with a 20% standard deviation generated a return of 15% last year when T-bills were paying 4.5%. This portfolio had a Sharpe measure

A portfolio with a 20% standard deviation generated a return of 15% last year when T-bills were paying 4.5%. This portfolio had a Sharpe measure of ____.

Multiple Choice

0.22
0.25
0.42
0.53

Suppose the price of a share of IBM stock is $200. An April call option on IBM stock has a premium of $5 and an exercise price of $200. Ignoring commissions, the holder of the call option will earn a profit if the price of the share

Multiple Choice

increases to $204.
decreases to $190.
increases to $206.

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