Question
You built a portfolio with the following characteristics. Stock Beta Standard Deviation Weight A 1.1 0.3 0.6 B 0.8 0.2 0.4A A) Assume a risk-free
You built a portfolio with the following characteristics.
| Stock | Beta | Standard Deviation | Weight |
| A | 1.1 | 0.3 | 0.6 |
| B | 0.8 | 0.2 | 0.4A |
A) Assume a risk-free rate of 3% and market risk premium of 10%. What is the Sharpe ratio of stock B? (Beta =0.8 ).
Type as a decimal, e.g. 0.5
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The Critical Handbook Of Money Laundering Policy Analysis And Myths
Authors: Petrus C. Van Duyne, Jackie H. Harvey, Liliya Y. Gelemerova
1st Edition
1137523972, 978-1137523976
