Question
Consider the following information: Portfolio Expected Return Standard Deviation Risk-free 7% 0% Market 13.4 37 A 12.0 26 Required: a. Calculate the Sharpe ratios for
Consider the following information:
| Portfolio | Expected Return | Standard Deviation |
|---|---|---|
| Risk-free | 7% | 0% |
| Market | 13.4 | 37 |
| A | 12.0 | 26 |
Required:
a. Calculate the Sharpe ratios for the market portfolio and portfolio A. (Round your answers to 2 decimal places.)
b. If the simple CAPM is valid, is the above situation possible? multiple choice
Yes
No
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The AMA Handbook Of Financial Risk Management
Authors: John J. Hampton
1st Edition
0814417442, 978-0814417447
