Ella owns a share with a beta of 1.34 and a standard deviation of 16.4%. The share has a total return of 14.8%. The market risk premium is 8.5%, while the return on the market portfolio was 12.0%. What is the value of Sharpe's measure for Ella's portfolio?
A) 0.21
B) 0.69
C) 0.38
D) 0.90
Correct Answer:
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