A firm that evaluates portfolios uses the Sharpe approach to measuring performance.How would it rank these three portfolios? $$\begin{array} { | l | r | r | r | }
\hline & \text { Total } & \text { Risk } & \
\hline & \text { Portfolio } & \text { Free } & \text { Standard } \
\hline & \underline { \text { Return } } & \text { Rate } & \text { Deviation } \
\hline \text { Bemis Money Managers } & 10 \% & 6 \% & 16 \% \
\hline \text { Fiddler Investment Company } & 15 \% & 6 \% & 20 \% \
\hline \text { Memory Group } & 8 \% & 6 \% & 11 \% \
\hline
\end{array}$$ Sharpe Measure $=$ $\frac{\text {Total Portfolio Return - Risk Free Rate }}{\text { Portfolio Standard Deviation}}$ What percent of funds under management should be invested in stocks,bonds,and the like?

Question

A firm that evaluates portfolios uses the Sharpe approach to measuring performance.How would it rank these three portfolios? $$\begin{array} { | l | r | r | r | } 
\hline & \text { Total } & \text { Risk } & \
\hline & \text { Portfolio } & \text { Free } & \text { Standard } \
\hline & \underline { \text { Return } } & \text { Rate } & \text { Deviation } \
\hline \text { Bemis Money Managers } & 10 \% & 6 \% & 16 \% \
\hline \text { Fiddler Investment Company } & 15 \% & 6 \% & 20 \% \
\hline \text { Memory Group } & 8 \% & 6 \% & 11 \% \
\hline
\end{array}$$ Sharpe Measure $=$ $\frac{\text {Total Portfolio Return - Risk Free Rate  }}{\text { Portfolio Standard Deviation}}$ What percent of funds under management should be invested in stocks,bonds,and the like?

Quizplus · Accepted Answer

The Answer of A firm that evaluates portfolios uses the Sharpe approach to measuring performance.How would it rank these three portfolios? $$\begin{array} { | l | r | r | r | } 
\hline & \text { Total } & \text { Risk } & \
\hline & \text { Portfolio } & \text { Free } & \text { Standard } \
\hline & \underline { \text { Return } } & \text { Rate } & \text { Deviation } \
\hline \text { Bemis Money Managers } & 10 \% & 6 \% & 16 \% \
\hline \text { Fiddler Investment Company } & 15 \% & 6 \% & 20 \% \
\hline \text { Memory Group } & 8 \% & 6 \% & 11 \% \
\hline
\end{array}$$ Sharpe Measure $=$ $\frac{\text {Total Portfolio Return - Risk Free Rate  }}{\text { Portfolio Standard Deviation}}$ What percent of funds under management should be invested in stocks,bonds,and the like?

A Firm That Evaluates Portfolios Uses the Sharpe Approach to Measuring