Aragorn has a portfolio with a 15% total return. The beta and the standard deviation of the portfolio is 1.5 and 10% respectively. The standard deviation of the market is also 10%. Currently, the return on Treasury Bill is 5% and the return on S&P 500 Index is 13%. 

What is the value of Sharpe's measure for Aragorn's portfolio? 

What does your answer indicate when compared to the market?

Answer rating: 100% (QA)

Solution To calculate the Sharpe ratio for Aragorns portfolio we first need to calculate the excess ... View the full answer