Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You bought a stock for $25.45, held it for a year, earned a $2.12 dividend and sold the stock for $32.88. During that same time

You bought a stock for $25.45, held it for a year, earned a $2.12 dividend and sold the stock for $32.88. During that same time period, the S&P 500 generated a 12.6% total return, and the 10-year treasury generated a 1.44% total return. You estimate the volatility of you stock to have been 17.4% compared to the S&P 500 volatility of 13.4% and 10-year treasury volatility of 0.65%. Calculate the Sharpe ratio of your stock.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Focus On Personal Finance An Active Approach To Help You Develop Successful Financial Skills

Authors: Jack Kapoor, Les Dlabay, Robert Hughes

4th Edition

0078034787, 978-0078034787

More Books