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nataly862011 [7]
3 years ago
8

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 o

ptimal complete portfolio is 12%. The Sharpe ratio of the optimal complete portfolio is:
Business
1 answer:
Marrrta [24]3 years ago
4 0

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

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