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2. If markets are efficient, what can we expect regarding Sharpe ratios of different assets? All stocks should have the same Sharpe ratio Some stocks
2. If markets are efficient, what can we expect regarding Sharpe ratios of different assets?
All stocks should have the same Sharpe ratio
Some stocks should have higher Sharpe ratios than other stocks
Sharpe ratios for high beta stocks will be larger than Sharpe ratios for low beta stocks
Sharpe ratios will always be greater than 0.25.
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