Explanation
The Sharpe ratio is the ratio of excess returns to risk. Excess returns are measured as the returns over the risk-free rate, and risk is measured in terms of volatility, ie standard deviation. Two portfolios with identical Sharpe ratios will certainly have the same ratio of risk and return, though the absolute levels of the return and the risk may vary. Therefore Choice 'c' is the correct answer.

Explanation
The London Interbank Offered Rate (LIBOR) is published by the British Bankers' Association (BBA). The BBA polls the rates offered by at least eight banks drops the top and bottom quartile, and averages the middle two quartiles of the rates to arrive at the LIBOR.

Explanation
The day count convention used for US treasury bonds is Act/Act. The other choices are incorrect.

Explanation
A utility function is graphed with utility on the y-axis and the variable driving utility (generally wealth) along the x-axis.
A concave utility function, ie a function with a downward sloping curve, indicates risk aversion. A convex utility function indicates a risk seeking attitude and a straight line (ie no curvature) indicates a risk neutral attitude.

Explanation
Over the counter and electronic communication networks match buyers and sellers. However, there is no market making function, ie, in periods of stress liquidity may completely disappear from these markets.
Exchanges normally have market makers that are required to present two way quotes on the securities they are making the market for. Therefore Choice 'a' is the correct answer.