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First, calculate the market price of risk(Sharpe ratio) for the following portfolios. Then determine which of the following statements is absolutely true if investors prefer

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First, calculate the market price of risk(Sharpe ratio) for the following portfolios. Then determine which of the following statements is absolutely true if investors prefer higher sharpe ratios. riskp sharpe ratio returnp 0.04 Portfolio Q 0.03 Portfolio Z 0.06 0.05 MVP 0.04 0.04 rf 0.02 10.00 STOCKB Return Portfolio 2 Portfolio o MVP STOCK A RI 0 Risk o O MVP dominates Portfolio Q O Portfolio Q dominates MVP O risk free asset has the highest Sharpe ratio O Portfolio Q dominates Portfolio Z

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