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George has an investment portfolio with an actual rate of return of 6.5%, a standard deviation of 3%, and a beta of 0.85. Assuming the
George has an investment portfolio with an actual rate of return of 6.5%, a standard deviation of 3%, and a beta of 0.85. Assuming the market's actual return is 7% and the risk-free rate of return is 3%, calculate the Sharpe ratio for this portfolio.
A)
0.17
B)
1.17
C)
0.06
D)
2.17
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