Question
Please help asap The current price of Stock PPE is $50. If the market is up next year, the price of PPE is expected to
Please help asap
The current price of Stock PPE is $50. If the market is up next year, the price of PPE is expected to increase to $60 while if the market is down, the price is expected to decrease to $47. The probability of an up market next year is 40% while the probability of a down market is 60%. PPE does not pay any dividend. The current T-bill rate is 1%. What is the Sharpe ratio of PPE?
| A. | 0.2669 | |
| B. | 0.2099 | |
| C. | 0.5102 | |
| D. | 0.3611 |
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Finance Applications and Theory
Authors: Marcia Cornett, Troy Adair
3rd edition
1259252221, 007786168X, 9781259252228, 978-0077861681
