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Calculate the Sharpe ratios for portfolios A, B, and T in Table 7.5. Treasury bills offer an interest rate of 2%. Which portfolio offers the

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Calculate the Sharpe ratios for portfolios A, B, and T in Table 7.5. Treasury bills offer an interest rate of 2%. Which portfolio offers the highest ratio? (Round your answers to 4 decimal places.)

a. Sharpe ratios for portfolios A

b. Sharpe ratios for portfolios B

c. Sharpe ratios for portfolios T

d. Highest sharpe ratio

TABLE 7.5 Examples of efficient portfolios chosen from 10 stocks

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