Can the reward-to-volatility (Sharpe) ratio, S [ E ( r C ) r f ]/

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Can the reward-to-volatility (Sharpe) ratio, S  [ E ( r C )  r f ]/  C , of any combination of the risky asset and the risk-free asset be different from the ratio for the risky asset taken alone,

[ E ( r P )  r f ]/  P , which in this case is .36?

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Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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