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ou manage a risky portfolio with an expected rate of return of 19% and a standard deviation of 30%. The T-bill rate is 4%. Your
ou manage a risky portfolio with an expected rate of return of 19% and a standard deviation of 30%. The T-bill rate is 4%. Your client chooses to invest 75% of a portfolio in your fund and 25% in a T-bill money market fund. What is the reward-to-volatility (Sharpe) ratio (S) of your risky portfolio? Your clients? (Do not round intermediate calculations. Round your answers to 4 decimal places.)
Your Reward-to Volatility Ratio | |
Client's Reward-to-Volatility Ratio |
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