Question: a portfolio with a 22.6% standard deviation generated a return of 16.7% last year when t-bills were paying 4%. this portfolio had a sharpe ratio

a portfolio with a 22.6% standard deviation generated a return of 16.7% last year when t-bills were paying 4%. this portfolio had a sharpe ratio of____

A) 0.3825

B)0.2692

C) 0.4276

D) 0.5619

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

The last exam will cover these 3 tests plus a few small quizzes. The attached should give you a good idea of the material. Let me know if you have any questions. You can see which I got correct with...

A risky portfolio with a 22% standard deviation generated a return of 11.1% last year when T-bills were paying 4.5% . The CAL connecting the risky portfolio and the risk free investment has a Sharpe...

A portfolio with a 25% standard deviation generated a return of 15% last year when T-bills were paying 4.5%. This portfolio had a Sharpe ratio (E(r_p) - r_L/sigma_P) of __ 0 65 0.50 0.42 0.35 You...

10. A portfolio with a 20% standard deviation generated a return of 12% last year when T-bills were paying 3%. This portfolio had a Sharpe measure of_------------. What is the risk premium? 11. An...

1. (a) A portfolio with a 25% standard deviation generated a return of 15% last year when T-bills were paying 4.5%. What is the Sharpe ratio of this portfolio? (b) You purchased a share of stock for...

QUESTION 1 A benchmark index has three stocks priced at $23, $43, and $56. The number of outstanding shares for each is 350,000 shares, 405,000 shares, and 553,000 shares, respectively. If the prices...

QUESTION 7 A portfolio with a 25% standard deviation generated a return of 15% last year when T-bills were paying 4.5%. This portfolio had a Sharpe ratio of A. 22 OD. 25 QUESTION 8 Consider a...

The geometric average of 21%, 60%, and 55% is _________. Whats the arithmetic average? An investment earns 30% the first year, earns 35% the second year, and loses 34% the third year. The total...

1. A portfolio with a 25% standard deviation generated a return of 17% last year when T-bills were paying 7.5%. This portfolio had a Sharpe ratio of __________. a. 0.63 b. 0.25 c. 0.38 d. 0.21 2. An...

A. the striking price minus the stock price. B. the stock price minus the value of the call C. the call premium. D. the stock price. E. None of the options are correch. 12. You write one ATET...

Assume that you want to retire 30 years from now with an amount of money that will have the same value (same purchasing power) as $1.5 million today. If you estimate the inflation rate will be 4% per...

Plant, Co. estimates that selling costs will be $10,000 for the month, direct labor will be $80,000 using a standard rate of $50/hour, direct materials will be $10,000, indirect manufacturing costs...

Is the book value of equity, as part of equity valuation, ( 1 ) what you know, ( 2 ) what you think you know, and ( 3 ) what you don t know?

The first scenario will be a Verbal Judo scenario in which your scenario follows the standard Verbal Judo interaction: You need to ask somebody to modify their behavior either to do something or to...

Teamwork. Global. Technology. Form teams of three students. Choose a culture you are not totally familiar with but would like to learn more about. Research (through the Internet or interviews) the...

Teamwork. Bring a newspaper,magazine, or book to class. a. Working in a group of four, have one member read aloud for five minutes while the other three members listenone using cautious listening,...

Global. Teamwork. Conduct an in-class debate on whether ineffective listening is strictly an American problem or whether it exists worldwide. Do the secondary research necessary to support your or...