Question
The sharp ratio of the market portfolio is 0.4. If the CAPM is valid, then in equilibrium. A. the Sharpe ratio of the stock of
The sharp ratio of the market portfolio is 0.4. If the CAPM is valid, then in equilibrium.
A. the Sharpe ratio of the stock of a high-tech company will be greater than 0.4
B. the Sharpe ratio of the stock with a beta of 2.0 will be greater than 0.4.
C. the Sharpe ratio of a mean-variance efficient portfolio will be greater than 0.4.
D. None of the above
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Public Finance And Public Policy
Authors: Jonathan Gruber
6th Edition
1319105254, 9781319105259
