Question
Boris stock has an average return of 15 percent. It's beta is 1.5. It's standard deviation of returns is 25 percent. The average risk-free rate
Boris stock has an average return of 15 percent. It's beta is 1.5. It's standard deviation of returns is 25 percent. The average risk-free rate is 6 percent. The Sharpe Index for Boris stock is?
The answer is 0.36, however I am not sure on how to calculate this to get that answer, please show calculations and explanation! Thank you!
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Financial And Managerial Accounting
Authors: Nonso E Okpala
1st Edition
1634873904, 9781634873901
