Congratulations! Your portfolio returned 11% last year, 2% better than the market return of 9%. Your portfolio

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Congratulations! Your portfolio returned 11% last year, 2% better than the market return of 9%. Your portfolio had a standard deviation of earnings equal to 18%, and the risk-free rate is equal to 6%. Calculate Sharpe’s measure for your portfolio. If the market’s Sharpe’s measure is .3, did you do better or worse than the market from a risk/return perspective?
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Fundamentals of Investing

ISBN: 978-0133075359

12th edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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