Question: (Please show how you got the answer.) If a portfolio had a return of 15%, the risk-free asset return was 5%, and the standard deviation

(Please show how you got the answer.)

If a portfolio had a return of 15%, the risk-free asset return was 5%, and the standard deviation of the portfolio's excess returns was 30%, the Sharpe measure would be ______ .

A. 0.20

B. 0.35

C. 0.45

D. 0.33

E. 0.25

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!

(Please show how you got the answer.) If a portfolio had a return of 15%, the risk-free asset return was 5%, and the standard deviation of the portfolio's excess returns was 30%, the Sharpe measure...

14. Your portfolio consists of $50,000 invested in Stock X and $50,000 invested in Stock Y. Both stocks have an expected return of 15%, betas of 2.0, and standard deviations of 30%. The returns of...

I have some financial mathematics problems Problem 3 [Required, 25 marks! The following table shows the expected return up and standard deviation up of 4 portfolios Expected return Standard n...

With the above procedures, we have data in the Excel file "Data_MomContrarian.xlsx". The data sample is monthly from 1931.01-2011.12. The variable definition for each column is described in the...

Solve the following problems. Show all the steps, please Solve the following problems. Show all the steps. Problem 1. Given the following portfolios and assuming returns are normally distributed...

3 . Assume there are two risky assets in the securities market: stock A and stock B . Stock A has an expected return of 2 0 % and a standard deviation of 2 8 % . Stock B has an expected return of 1 4...

please solve this using excel formulas thank you. 5 BER The following table contains the historic returns from large stocks and long-term Treasury bonds over the last 20 years. Analyte the risk...

The one-month riskfree rate is 0.4%. Risky asset A has a mean return of 1.5% a month and a standard deviation of 10%. Risky asset B has a mean return of 0.8% a month and a standard deviation of 5%....

Q1-The expected return of the portfolio with stock B is % Q2-The expected return of the portfolio with stock C is % Q3-The Standard Deviation of Portfolio with stock B is % Q4-The Standard Deviation...

show all the steps and formullas clearly with a handwritten answer please. Thanks C. (8 marks) Suppose the current market risk expected excess return is 16%. Company Z has a standard deviation of...

(Basic Pension Worksheet) The following defined pension data of Rydell Corp. apply to the year 2010. For 2010, prepare a pension worksheet for Rydell Corp. that shows the journal entry for pension...

When would it be appropriate to hold a formal team-building session on a project?

imagine you are shopping for a new smartphone you visit a store where the first phone you see is priced at $ 1 , 2 0 0 later you find a similar phone price at 8 0 0 despite both phones having similar...

Strategists can grow their firms by growing organically through internal development or externally through alliances and divesting businesses capabilities acquisitions PESTEL analysis

Your employer has approached you to assume a managerial role. Although flattered, you are also concerned about your ability to carry out the role successfully. What type of training or development...

What have been the biggest changes that you have noticed in how you learn as a postsecondary student? What do you think has been the key driver of these changes?

Would you be willing to take a blended delivery (partially in person and partially online) postsecondary course? Why or why not? What would be some of the potential benefits and problems that you...