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3 years ago

11

A portfolio with a 21% standard deviation generated a return of 16% last year when T-bills were paying 5.5%. This portfolio had

a Sharpe ratio of ____.

1 answer:

EleoNora [17]3 years ago

6 0

Answer:

0.5

Explanation:

A portfolio has 21% standard deviation

The return is 16%

T-bills were paying 5.5%

Therefore the Sharpe ratio can be calculated as follows

= 16-5.5/21

= 10.5/21

= 0.5

Hence the Sharpe ratio is 0.5

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