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Consider the following information: Portfolio Expected Return Standard Deviation Risk-free 10 % 0 % Market 18 24 A 16 12 a. Calculate the sharpe ratios
| Consider the following information: |
| Portfolio | Expected Return | Standard Deviation | ||||
| Risk-free | 10 | % | 0 | % | ||
| Market | 18 | 24 | ||||
| A | 16 | 12 | ||||
| a. | Calculate the sharpe ratios for the market portfolio and portfolio A. (Round your answers to 2 decimal places.) |
| Sharpe Ratio | |
| Market portfolio | |
| Portfolio A | |
| b. | If the simple CAPM is valid, state whether the above situation is possible? | ||||
|
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