37. Assume the managed portfolio expected return is 30% and standard deviation is 40%. The market portfolio has an expected return of 20% with standard deviation of 30%. The t- bill rate is 5%. What is the M2 measure of this portfolio? O a. 3.75% O b. 5 % O c. 9.92% O d. 2.38% O e. 1.5%

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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37. Assume the managed portfolio expected return is 30% and standard deviation is 40%. The market portfolio has an expected return of 20% with standard deviation of 30%. The t-
bill rate is 5%. What is the M² measure of this portfolio?
Ⓒa. 3.75%
O b. 5%
O c. 9.92%
O d. 2.38%
O e. 1.5%
Transcribed Image Text:37. Assume the managed portfolio expected return is 30% and standard deviation is 40%. The market portfolio has an expected return of 20% with standard deviation of 30%. The t- bill rate is 5%. What is the M² measure of this portfolio? Ⓒa. 3.75% O b. 5% O c. 9.92% O d. 2.38% O e. 1.5%
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