Question
The S&P 500 has had an average annual return of about 12%, with a standard deviation of 20%. Assuming a riskless interest rate of 5%,
The S&P 500 has had an average annual return of about 12%, with a standard deviation of 20%. Assuming a riskless interest rate of 5%, what is the Sharpe ratio for this portfolio? How does the Sharpe ratio change when the asset allocation consists of the S&P 500 and t-bills (e.g., weights of .5 on each)?
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Essentials Of Real Estate Finance
Authors: Doris Barrell
15th Edition
1475462077, 978-1475462074
