Question
A manager is considering adding a new investment to the portfolio. The existing portfolios Sharpe ratio is 0.65. The new investment has a Sharpe ratio
A manager is considering adding a new investment to the portfolio. The existing portfolios Sharpe ratio is 0.65. The new investment has a Sharpe ratio of 0.5, and a correlation coefficient with the portfolio of 0.8. Should the new investment be added or not?
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For Mowen/hansen/heitgers Cornerstones Of Managerial Accounting, 6th Edition, [instant Access]
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
6th Edition
1305280768, 9781305280762
