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You would like to invest in Ford stock. Ford has an expected return of 9.2% and a standard deviation of 38.5%. Assume the risk free
You would like to invest in Ford stock. Ford has an expected return of 9.2% and a standard deviation of 38.5%. Assume the risk free rate is 1.1%. By definition, the risk-free rate is risk-free, so it has a correlation with Ford of 0%. If you put 100% of your wealth in Ford stock, what will be the Sharpe Ratio of your portfolio? Enter your answer in decimal form (so if your answer is 21.2%, type .212).
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