Question
Consider the following information: Portfolio Expected Return Standard Deviation Risk-free 7% 0% Market 11.6 28 A 10.0 17 A. Calculate the Sharpe ratios for the
Consider the following information:
| Portfolio | Expected Return | Standard Deviation |
|---|---|---|
| Risk-free | 7% | 0% |
| Market | 11.6 | 28 |
| A | 10.0 | 17 |
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?
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
2nd Edition
0073530638, 9780073530635
