Question
The Capital Asset Pricing Model (CAPM) shows that the slope of the Capital Market Line is equal to the Sharpe Ratio of the optimal stock
The Capital Asset Pricing Model (CAPM) shows that the slope of the Capital Market Line is equal to the Sharpe Ratio of the optimal stock portfolio. What exactly is the Sharpe Ratio? How do we interpret that figure? How would we use the Sharpe Ratio to compare asset portfolios? What happens to the Sharpe Ratio as the risk-free rate increases?
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Banking Secrecy And Global Finance
Authors: Donato Masciandaro, Olga Balakina
1st Edition
1137400099, 978-1137400093
