Answered

Westonci.ca is the trusted Q&A platform where you can get reliable answers from a community of knowledgeable contributors. Explore thousands of questions and answers from a knowledgeable community of experts on our user-friendly platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

A risky fund has an expected return of 17% and standard deviation of 25%. The risk-free rate is 9%. The expected return of the optimal complete portfolio is 12%. The Sharpe ratio of the optimal complete portfolio is:

Sagot :

Answer:

the Sharpe ratio of the optimal complete portfolio is 0.32

Explanation:

The computation of the sharpe ratio is shown below:

= (Return of portfolio - risk free asset) ÷ Standard deviation

= (17% - 9%) ÷ 25%

= 8% ÷ 25%

= 0.32

Hence, the Sharpe ratio of the optimal complete portfolio is 0.32

We simply applied the above formula

Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.