TABLE 17.1
Use the information to answer the following question(s).

-Refer to Table 17.1.What is the value of the Sharpe Measure for France?
A)0.113
B)0.0071
C)Either A or B
D)Neither A nor B

Question

TABLE 17.1
Use the information to answer the following question(s).
 
-Refer to Table 17.1.What is the value of the Sharpe Measure for France?
A)0.113 
B)0.0071 
C)Either A or B 
D)Neither A nor B

Quizplus · Accepted Answer

The Sharpe Measure for France is calculated by dividing the difference between the average return of the fund and the risk-free rate by the standard deviation of the fund. From Table 17.1, we can see that the average return for France is 8.5% and the risk-free rate is 3.5%, while the standard deviation is 60. Therefore, the Sharpe Measure for France is (8.5 - 3.5) / 60 = 0.1 or 0.113 rounded to three decimal places. Therefore, the correct choice is A.

TABLE 17.1 Use the Information to Answer the Following Question(s)