Question
The Lion High Yield Fixed Income Fund has a one-year holding period return of 18% while the risk-free rate is 4%. Measures of risk for
The Lion High Yield Fixed Income Fund has a one-year holding period return of 18% while the risk-free rate is 4%. Measures of risk for Lion include a beta of 1.9 and a standard deviation of 30%. The estimate for the Sharpe ratio is closest to:
a. 0.06.
b. 0.12.
c. 0.47.
d. 0.52.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
14th edition
978-1305887725, 1305887727, 1305636619, 978-1305636613
