A portfolio generates an annual retum of 16, a beta of 1 2 , and a standard deviation of 10 The market index return is 12 and has a standard deviation of 9 What is the Sharpe ratio of the portfolio if the risk free rate is 6 A 1 00 B 0 4757 C 0 5263 D 0 7252

Question

A portfolio generates an annual retum of  16, a beta of 1 2 , and a standard deviation of  10  The market index return is  12 and has a standard deviation of  9  What is the Sharpe ratio of the portfolio if the risk free rate is  6   A  1 00 B  0 4757 C  0 5263 D  0 7252

Accepted Answer

The Answer is in the image, click to view ...

Question

A portfolio generates an annual retum of 16, a beta of 1.2 , and a standard deviation of 10. The market index return is 12

A portfolio generates an annual retum of \16, a beta of 1.2 , and a standard deviation of \10. The market index return is \12 and has a standard deviation of \9. What is the Sharpe ratio of the portfolio if the risk-free rate is \6 ? A. 1.00 B. 0.4757 C. 0.5263 D. 0.7252

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Your Financial Future How To Take Control Of Your Financial Future