Can the Sharpe (reward-to-volatility) ratio, S = [E(rC) rf]/C, of any combination of the risky asset

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Can the Sharpe (reward-to-volatility) ratio, S = [E(rC) − rf]/σC, of any combination of the risky asset and the risk-free asset be different from the ratio for the risky asset taken alone, [E(rP) − rf]/σP, which, in this case, is .36?

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ISE Investments

ISBN: 9781260571158

12th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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Question Posted: Mar 13, 2024 05:00 AM

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Can the Sharpe (reward-to-volatility) ratio, S = [E(rC) rf]/C, of any combination of the risky asset

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ISE Investments

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