A portfolio has a Sharpe ratio of .80,a standard deviation of 17.4 percent,and an expected return of 15.9 percent.What is the risk-free rate?
A)1.98 percent
B)2.36 percent
C)2.48 percent
D)3.09 percent
E)3.15 percent

Name: A portfolio has a Sharpe ratio of .80,a standard deviation of 17.4 percent,and an expected return of 15.9 percent.What is the risk-free rate? A)1.98 percent B)2.36 percent C)2.48 percent D)3.09 percent E)3.15 percent
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Question

Quizplus · Accepted Answer

.80 = (.159 - r_f)/.174; r_f = 1.98 percent

A Portfolio Has a Sharpe Ratio of