Question: 10 points A) Explain in your own words what the Sharpe ratio is. B) Two hedge fund managers each earned a 15% return last

10 points A) Explain in your own words what the Sharpe ratio

10 points A) Explain in your own words what the Sharpe ratio is. B) Two hedge fund managers each earned a 15% return last year. One invested in Treasury Bonds and the other in Bitcoin. Who had the higher Sharpe ratio?

Step by Step Solution

★★★★★

3.61 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

par t A Sharpe ratio is used to evaluate the riskadjusted performance of a mutual fund Basically thi... View full answer

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 General Management Questions!

Explain in your own words what an uncertain quantity or random variable is. Why is the idea of an uncertain quantity important in decision analysis? Use the probability table to find the following:...

Explain in your own words what post announcement drift is. Why is this an anomaly for securities market efficiency? Give two behavioural biases that could generate post announcement drift.

Explain in your own words what a two-part pricing scheme is and why sellers might use one.

Suncor Energy Inc. is a major developer in the oil sands of Northern Alberta. Note 17 to Suncor's financial statements (Exhibit 10-15) describes the company's long-term debt as at December 31, 2009....

15.41 Premarital doubts, divorce, and chi square: In an article titled Do Cold Feet Warn of Trouble Ahead?, researchers studied 464 married heterosexual spouses to determine whether doubts before...

Explain in your own words how the slope of an indifference curve provides information about how much a consumer likes one good relative to another.

Explain in your own words what the precision (p) and scale (s) parameters for the Oracle data type NUMBER mean. DBMS you are using is Oracle. If that is not the case, feel free to modify the question...

Researchers investigated whether or not language in job postings affected the likelihood that women and men would negotiate regarding salary (Leibbrandt & List, 2012). Some job postings clearly...

Explain in your own words what the term compound interest means.What does continuous compounding mean?

Identify an organisation that undertakes corporate social reporting and has an independent party provide assurance on such reporting. Explain in your own words what the assurance covers and does not...

An investor's portfolio consists of 50000 EURO in stocks and 5000 EURO in cash, the Beta of the portfolio is 1, 10. How the investor could reduce Beta of the portfolio to 0, 95? Show and explain

state the current situation of Learnenow inc and describe the team's goals and the desired outcome should be?

A collector found a bone near a former Mayan territory. After careful research it has been determined that the bone lost about 8% of its Carbon-14. Approximately how old is the bone? Could it have...

Sweet Memories Inc (for Q11-13) Sweet Memories Inc is a company that produces Customized Family Portraits. Preparing a Family Portrait involves 3-steps: Collect the Images and Stories, Edit, and...

5. An outside manufacturer has offered to produce 86,000 Daks and ship them directly to Andretti's customers. If Andretti Company accepts this offer, the facilities that it uses to produce Daks would...

Howard is in the 33% tax bracket, so his after-tax profit is 67% of his before-tax profit. He invests $10,000 in a certain stock, whose annual return is normally distributed with mean 5% and standard...

The 2014 records of Thompson Company showed beginning inventory, $21,000; cost of goods sold, $29,000; and ending inventory, $23,000. The cost of purchases for 2014 was: a. 16,500; b. 31,000; c....

Time Solutions, Inc. is an employment services firm that places both temporary and permanent workers with a variety of clients. Temporary placements account for 70% of Time Solutions' revenue;...

Someday you probably will face a choice among job offers. Aside from the nature of the job itself, two attributes that are important for many people are salary and location. Some people prefer large...

Use PrecisionTree to create and solve the influence diagram that corresponds to the decision tree in Figure 4.41. 20 10 10 51

Describe in your own words the difference between a means objective and a fundamental objective. Why do we focus on coming up with attribute scales that measure accomplishment of fundamental...

9.27. Table 9.13, which is the "UN data" file at the text Web site, shows United Nations data from 2005 for several nations on a human development index (HDI, which has components referring to life...

9.14. Table 9.16 in Exercise 9.39 shows countywidc data for several variables in Florida. For those counties. Table 9.9 shows part of the printout for the regression analysisrelatingy = median income...

Let be numbers satisfying . Then is called a contrast in the mi s. Notice that with , which implies that every pairwise difference between mi s is a contrast (so is, e.g., ). A method attributed to...