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22 1 pts You currently have all of your money invested in the S&P 500. You are considering investing in the SmarterBeta fund, and you
22 1 pts You currently have all of your money invested in the S&P 500. You are considering investing in the SmarterBeta fund, and you would like to know if by doing so you could increase the Sharpe Ratio of your portfolio. For that purpose, you run a regression of the excess returns on the fund on the excess returns on the S&P 500. You find the following outcome, where all coefficients are statistically significant: alpha =2%, beta =1.5, R^(^^)2=70%. Given an excess return on the S&P of 8% and a S&P (market) volatility of 25%, by how much could you increase your portfolio's Sharpe Ratio
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