Answered step by step
Verified Expert Solution
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started