The Sharpe ratio is Calulated as (Portfolio return- Risk free rate )/ Portfolio Standard deviation

Return taken for calculation is net of expenses.

Sharpe ratio is most applicable for a diversified porfolio and least applicable for Company stocks.

Answer 6) I would choose a porfolio with all the above funds except for company stocks. This way my porfolio will become well diverdified and professionally managed. The percentage amount I would invest in each of the above funds would be decided through the capital asset pricing model. A an investor I would invest in all portfolios which lie above the minimum variance porfolio i.e investing in a porfolio which has same level of risk but higher returns.

10 year us govt bond yield Fee Adjusted return St.deviation Risk free rate Sharpe Ratio 0.57 0.65 0.53 0.63 0.23 10-year return Expense Fee Bledsoe S&P 500 Indexed fund Bledsoe small cap fund Bledsoe Large cap Stock Fund Bledsoe Bond Fund Company Stock 11.48% 16.68% 11.85% 9.67% 18% 0.15% 1.70% 1.50% 0.60% 0% 11.33% 14.98% 10.35% 9.07% 18.00% 15.82% 19.64% 15.41% 10.83% 70% 2.24% 2.24% 2.24% 2.24% 2.24% 10 year us govt bond yield Fee Adjusted return St.deviation Risk free rate Sharpe Ratio 0.57 0.65 0.53 0.63 0.23 10-year return Expense Fee Bledsoe S&P 500 Indexed fund Bledsoe small cap fund Bledsoe Large cap Stock Fund Bledsoe Bond Fund Company Stock 11.48% 16.68% 11.85% 9.67% 18% 0.15% 1.70% 1.50% 0.60% 0% 11.33% 14.98% 10.35% 9.07% 18.00% 15.82% 19.64% 15.41% 10.83% 70% 2.24% 2.24% 2.24% 2.24% 2.24%