Question
Leo holds a portfolio of three shares and their expected return as follow: Share Investment Expected Return Volatility Beta Bank 6,000 12% 0.46 0.9 Air
Leo holds a portfolio of three shares and their expected return as follow:
| Share | Investment | Expected Return | Volatility | Beta |
|
| Bank | 6,000 | 12% | 0.46 | 0.9 |
|
| Air | 14,000 | 8% | 0.22 | 1.1 |
|
1.What is the expected return on the portfolio?
|
|
2.What is the portfolio volatility?
|
|
3.If the risk-free rate is 3%, calculate the Sharpe ratio.
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The New Public Finance
Authors: Inge Kaul, Pedro Condeicao
1st Edition
0195179978, 978-0195179972
