5. Suppose that you currently have $250,000 invested in a portfolio with an expected return of 12% and a volatility of 10%. At the same time the efficient (tangent) portfolio has an expected return of 17% and a volatility of 12%. The risk- free rate of interest is 5%. The Sharpe ratio for your portfolio is closest to: A) 1.2. B) 0.6. C) 1.0. D) 0.7.
5. Suppose that you currently have $250,000 invested in a portfolio with an expected return of 12% and a volatility of 10%. At the same time the efficient (tangent) portfolio has an expected return of 17% and a volatility of 12%. The risk- free rate of interest is 5%. The Sharpe ratio for your portfolio is closest to: A) 1.2. B) 0.6. C) 1.0. D) 0.7.
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 13P
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![5. Suppose that you currently have $250,000 invested in a
portfolio with an expected return of 12% and a volatility of
10%. At the same time the efficient (tangent) portfolio has
an expected return of 17% and a volatility of 12%. The risk-
free rate of interest is 5%.
The Sharpe ratio for your portfolio is closest to:
A) 1.2.
B) 0.6.
C) 1.0.
D) 0.7.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc61a5d7-7e46-42e0-9d49-1ea61d0fa8b1%2Feb7e70e1-2760-4737-8ccf-c57c9267c57d%2Fty6jvb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5. Suppose that you currently have $250,000 invested in a
portfolio with an expected return of 12% and a volatility of
10%. At the same time the efficient (tangent) portfolio has
an expected return of 17% and a volatility of 12%. The risk-
free rate of interest is 5%.
The Sharpe ratio for your portfolio is closest to:
A) 1.2.
B) 0.6.
C) 1.0.
D) 0.7.
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