Your client has a risk aversion of A=3 when applied to return on wealth over a 1 year horizon. She is looking at two portfolios: The S\&P 500 with a Risk Premium of 8% and a standard Deviation of 20%. A Hedge Fund with a Risk Premium of 12% and a standard Deviation of 35% There is an annual correlation of .6200 Use this data for problems #12#16 \begin{tabular}{|l|l|l|} \hline Fund & Risk Premium & STDEV \\ \hline S\&P 500 & 0.0800 & 0.2000 \\ \hline Hedge & 0.1200 & 0.3500 \\ \hline Correlation & 0.6200 \\ \hline Risk Aversion A & 3.00 \\ \hline \end{tabular} What is the Sharpe Ratio Sharpe =( Expected Return on Portfolio / Stdev of Portfolio ) (A) 4179 3955 (C) 5955 Your client has a risk aversion of A=3 when applied to return on wealth over a 1 year horizon. She is looking at two portfolios: The S\&P 500 with a Risk Premium of 8% and a standard Deviation of 20%. A Hedge Fund with a Risk Premium of 12% and a standard Deviation of 35% There is an annual correlation of .6200 Use this data for problems #12#16 \begin{tabular}{|l|l|l|} \hline Fund & Risk Premium & STDEV \\ \hline S\&P 500 & 0.0800 & 0.2000 \\ \hline Hedge & 0.1200 & 0.3500 \\ \hline Correlation & 0.6200 \\ \hline Risk Aversion A & 3.00 \\ \hline \end{tabular} What is the Sharpe Ratio Sharpe =( Expected Return on Portfolio / Stdev of Portfolio ) (A) 4179 3955 (C) 5955