What is the maximum Sharpe ratio that a manager can achieve by combining the S&P 500...

 

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What is the maximum Sharpe ratio that a manager can achieve by combining the S&P 500 benchmark and actively managed Indigo fund? Relevant information is in the table below. Expected annual return Return standard deviation Sharpe ratio Active return Active risk Information ratio a. 0.448 b. 0.333 c. 0.365 O d. 0.300 S&P 500 9.0% 18.0% 0.333 Indigo Fund 10.5% 25.0% 0.300 1.2% 8.0% 0.15 What is the maximum Sharpe ratio that a manager can achieve by combining the S&P 500 benchmark and actively managed Indigo fund? Relevant information is in the table below. Expected annual return Return standard deviation Sharpe ratio Active return Active risk Information ratio a. 0.448 b. 0.333 c. 0.365 O d. 0.300 S&P 500 9.0% 18.0% 0.333 Indigo Fund 10.5% 25.0% 0.300 1.2% 8.0% 0.15

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The highest Sharp Ratio manager can possible is achieved is computed as f... View the full answer