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The following data are available relating to the expected performance of Monarch, a risky portfolio: 1. What is the Sharpe ratio of the portfolio? *
The following data are available relating to the expected performance of Monarch, a risky portfolio:
1. What is the Sharpe ratio of the portfolio? *
a. 0.461
b. 1.775
c. 0.769
d. 2.958
e. None of the above
2. At which level of risk-aversion A is the risk-free asset preferred to the risky portfolio? *
a. A has to be lower than 3.55
b. A has to be higher than or equal to 3.55
c. A has to be higher than or equal to 2.36
d. A has to be lower than 2.36
e. None of the above
Monarch Portfolio 16% Expected Return Variance 0.0676 Beta 1.15 The risk-free return during the sample period was 4%Step by Step Solution
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