单选题
The risk-free rate is 4% , and John's portfolio has an expected return of 15% and a standard deviation of 30%, John is concerned that the portfolio might earn less than 10%, What is the safety-first ratio for John's portfolio?
A、
A. 0.367.
B、
B. 0.500.
C、
C.0.167.
【正确答案】
C
【答案解析】
The ratio=(ER-Rlower)/σ=(15%-10%)/30%=0.167.
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