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Risk Free = 0.04 A B D Mkt (SPY) Company TIME TODAY 72 -1 -2 -3 0 - 2 3 4 5 154 123 145

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Risk Free = 0.04 A B D Mkt (SPY) Company TIME TODAY 72 -1 -2 -3 0 - 2 3 4 5 154 123 145 105 85 112 94 115 880&& 64 82 73 64 34 125 110 160 89 52 64 2900 2450 2910 2950 2400 102 67 20 75 2000 Using the information on the four assets and the market; what is your estimate of the portfolio Sharpe Ratio, assuming you put 30% in your favorite asset, 20% in the second favorite and 50% in the Market Asset. Answer: Risk Free = 0.04 A B D Mkt (SPY) Company TIME TODAY 72 -1 -2 -3 0 - 2 3 4 5 154 123 145 105 85 112 94 115 880&& 64 82 73 64 34 125 110 160 89 52 64 2900 2450 2910 2950 2400 102 67 20 75 2000 Using the information on the four assets and the market; what is your estimate of the portfolio Sharpe Ratio, assuming you put 30% in your favorite asset, 20% in the second favorite and 50% in the Market Asset

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