Assume the risk-free rate (Treasury bill yield) was and is 4%. What was the (annualized) Sharpe ratio

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Assume the risk-free rate (Treasury bill yield) was and is 4%. What was the (annualized) Sharpe ratio of the stock?

Hint: Use the annualized return and standard deviation. The variance of returns over N weeks is N times the weekly variance. The standard deviation of returns over N weeks is N^0.5 times the weekly standard deviation.

Related Book For answer-question

Statistics For Business Decision Making And Analysis

ISBN: 9780321890269

2nd Edition

Authors: Robert Stine, Dean Foster

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Posted Date: Mar 26, 2024 06:26 AM

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Assume the risk-free rate (Treasury bill yield) was and is 4%. What was the (annualized) Sharpe ratio

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To calculate the Sharpe ratio of a stock we need to know the annualized return of the stock the risk... View the full answer

Statistics For Business Decision Making And Analysis

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