Question
A portfolio consists of the following two funds. Fund AFund B Expected Return13%9% Standard deviation16%10% Portfolio market value$6,000$14,000 Correlation (RA,RB)0.54 Risk-free rate4% What is the
A portfolio consists of the following two funds.
Fund AFund B
Expected Return13%9%
Standard deviation16%10%
Portfolio market value$6,000$14,000
Correlation (RA,RB)0.54
Risk-free rate4%
What is the Sharpe ratio of the portfolio?
Select one:
a.0.39
b.0.52
c.0.60
d.0.45
e.0.64
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
