Question
Consider the following information: Portfolio Expected Return Standard Deviation Risk-free 6% 0% Market 13.2 36 A 11.2 25 Required: a. Calculate the Sharpe ratios for
Consider the following information:
| Portfolio | Expected Return | Standard Deviation |
|---|---|---|
| Risk-free | 6% | 0% |
| Market | 13.2 | 36 |
| A | 11.2 | 25 |
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 Geography Of Finance
Authors: Gordon L. Clark, Darius Wójcik
1st Edition
0199213364, 978-0199213368
