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How to find Sharpe Ratio? (Please explain calculations) I was able to calculate the following: Stock's expected return: 18% Standard deviation: 24% Coefficient of variation:
How to find Sharpe Ratio? (Please explain calculations)
I was able to calculate the following:
Stock's expected return: 18%
Standard deviation: 24%
Coefficient of variation: 1.33
Assume the risk-free rate is 4%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places.
Demand for the Company's Products | Probability of This Demand Occurring | Rate of Return If This Demand Occurs |
Weak | 0.1 | (28%) |
Below Average | 0.1 | (14%) |
Average | 0.4 | 14 |
Above Average | 0.3 | 34 |
Strong | 0.1 | 60 |
0.1 |
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