A portfolio has an average return of 12.4 percent,a standard deviation of 15.8 percent,and a beta of 1.35.The risk-free rate is 2.6 percent.What is the Sharpe ratio?
A) 0.49
B) 0.52
C) 0.62
D) 0.71
E) 0.75

Name: A portfolio has an average return of 12.4 percent,a standard deviation of 15.8 percent,and a beta of 1.35.The risk-free rate is 2.6 percent.What is the Sharpe ratio? A) 0.49 B) 0.52 C) 0.62 D) 0.71 E) 0.75
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Question

Quizplus · Accepted Answer

Sharpe ratio = (0.124 − 0.026) / 0.158 = 0.62

A Portfolio Has an Average Return of 12