CFA Practice Question

There are 410 practice questions for this study session.

CFA Practice Question

The mean return in 2011 for a stock mutual fund of large companies was 7.2% and the mean return for a risk-free bond was 1.0 %. If the Sharpe measure for the mutual fund is 0.50, what is the standard deviation or risk of the stock mutual fund?
A. 3.2
B. 12.4
C. 16.4
Explanation: (7.2 - 1 ) / 0.5 = 12.4

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