Question
From the below information about two portfolios, explain which one is better investment option based on the Sharpe ratio. Calculate Sharpe ratio step-by-step with formulae
From the below information about two portfolios, explain which one is better investment option based on the Sharpe ratio. Calculate Sharpe ratio step-by-step with formulae without excel sheet (10 Marks)
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| Portfolio X | Portfolio Y |
| Annual Return (Rp) | 7.6% | 8.9% |
| Risk-free Return (Rf) | 5% | 5% |
| Standard deviation of portfolios return (p) | 0.12 | 0.23 |
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Urban Infrastructure Finance And Management
Authors: K. Wellman, Marcus Spiller
1st Edition
0470672188, 978-0470672181
