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Suppose that the Sharpe ratios for two assets are given by s1 = 0.6 and s2 = 0.4, respectively. For each of the assets

Suppose that the Sharpe ratios for two assets are given by s1 = 0.6 and s2 = 0.4, respectively. For each of the assets obtain its 'Risk Adjusted Performance', RAP, for a risk-free rate, r0 = 1%, and a benchmark standard deviation of return, oB = 0.3. Hence, interpret the meaning of an asset's RAP.

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