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A portfolio with a 5% standard deviation generated a risk premium of 15% last year when T-bills were paying 4%. This portfolio had a Sharpe

  1. A portfolio with a 5% standard deviation generated a risk premium of 15% last year when T-bills were paying 4%. This portfolio had a Sharpe ratio of ____.

  1. 1.2

B. 1.6

C. 2.8

D. 3.0

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