Question
A portfolio consists of the following two funds: Fund A Fund B Expected return 13% 9% Standard deviation 16% 10% Portfolio market value $6,000 $14,000
A portfolio consists of the following two funds:
Fund A Fund B
Expected return 13% 9%
Standard deviation 16% 10%
Portfolio market value $6,000 $14,000
Correlation (RA,RB) .54
Risk-free rate 4%
What is the Sharpe ratio of the portfolio?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Statements A Step By Step Guide To Understanding And Creating Financial Reports
Authors: Thomas Ittelson
1st Edition
1632652072, 978-1632652072
