Use the information for the question(s) below.
Suppose that you currently have $250,000 invested in a portfolio with an expected return of 12% and a volatility of 10%.The efficient (tangent) portfolio has an expected return of 17% and a volatility of 12%.The risk-free rate of interest is 5%.
-The Sharpe ratio for the efficient portfolio is closest to:
A) 0.7.
B) 1.0.
C) 1.4.
D) 1.2.
Correct Answer:
Verified
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