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The Sharpe Ratio of the optimal risky portfolio is .33. Assume you invest 40% in the risk-free portfolio and 60% in the optimal risky portfolio,
The Sharpe Ratio of the optimal risky portfolio is .33. Assume you invest 40% in the risk-free portfolio and 60% in the optimal risky portfolio, what is the Sharpe Ratio of your portfolio?
The expected return on the market for next period is 14 percent. The risk-free rate of return is 7 percent, and Newtech Company has a beta of 1.1. The market risk premium is:
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