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Terry recently read an article about portfolio diversification possibilities and the Sharpe ratio. Currently, he owns an optimal risky portfolio. After reading the article
Terry recently read an article about portfolio diversification possibilities and the Sharpe ratio. Currently, he owns an optimal risky portfolio. After reading the article he decides to incorporate risk-free government treasury bills to develop his complete portfolio. Explain how the Sharpe ratio of the complete portfolio would be affected?
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The Sharpe ratio measures the riskadjusted return of an investment or portfolio It is calculated by ...
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Financial Decisions And Markets A Course In Asset Pricing
Authors: John Y. Campbell
1st Edition
0691160805, 978-0691160801
