Use the following information to answer the question(s)below. The volatility of the market portfolio is 10%,the expected return on the market is 12%,and the risk-free rate of interest is 4%.
-The Sharpe Ratio for the market portfolio is closest to:
A)0.40.
B)0.48.
C)0.56.
D)0.80.

Question

Use the following information to answer the question(s)below.  The volatility of the market portfolio is 10%,the expected return on the market is 12%,and the risk-free rate of interest is 4%.
-The Sharpe Ratio for the market portfolio is closest to:
A)0.40. 
B)0.48. 
C)0.56. 
D)0.80.

Quizplus · Accepted Answer

The Sharpe Ratio for the market portfolio is typically around 0.80, reflecting the risk-adjusted return of the market.

Use the Following Information to Answer the Question(s)below