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e. Someone mentioned that you might also want to calculate the Sharpe ratio as a measure of standalone risk. Calculate the missing ratios and
e. Someone mentioned that you might also want to calculate the Sharpe ratio as a measure of standalone risk. Calculate the missing ratios and fill in the blanks on the row for the Sharpe ratio in the table. Briefly explain what the Sharpe ratio actually measures. f. Suppose you created a two-stock portfolio by investing $50,000 in High Tech and $50,000 in Collections. 1. Calculate the expected return (r^)), the standard deviation (8), the coefficient of variation (CVP), and the Sharpe ratio for this portfolio, and fill in the appropriate blanks in the table. 2. How does the riskiness of this two-stock portfolio compare with the riskiness of the individual stocks if they were held in isolation?
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