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You have 4 investment options and have collected the following information. Economy Pr[Economy] Elr(A)] Er(B)] E[r()] Elr(D)) 18% -10 54% 25% Bull 8896 26% Solid
You have 4 investment options and have collected the following information. Economy Pr[Economy] Elr(A)] Er(B)] E[r()] Elr(D)) 18% -10 54% 25% Bull 8896 26% Solid 3696 4% 16% 52% 1396 6% 10% 24% 2195 Average 2296 596 -22% Weak -6% 1496 3796 -10% -51% Bear -34% 1896 4. What is the expected return for Investment option C? 5. What is the standard deviation for investment A 6. Given a risk-free rate of 296, which investment option gives you the highest expected Sharpe Ratio? cases
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