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A risk-averse investor is interested to know the Sharpe ratio of the portfolio to make an investment decision. The expected return of the portfolio

A risk-averse investor is interested to know the Sharpe ratio of the portfolio to make an investment decision. The expected return of the portfolio is 15%. The return on the risk-free investment is 2.5%. The prevailing expected market return is 10% while the portfolio standard deviation is 5%. Calculate the Sharpe ratio of the investment.

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