Example 2: Calculate Sharpë Ratio on the basis of following data givenregarding four portfolios:Portfolio Expected Rate of ReturnSD of Returns from PortfoliosA11%6.0014%7.5010%3.009.0015%The expected return on market portfolio is 8.50 per cent with a Standarddeviation of 3. The RF is 5 per cent. Which portfolio has performed as thebest?

Answered: Image /qna-images/answer/5b46f261-0e0f-42c3-b4cb-72ee7b1d8a3b.jpg

Answered: The expected return on market portfolio…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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mnomy use the standard deviation of the monthly percentage return for a mutual fund as a measure of the risk for the fund; in such cases, a fund that has a larger standard deviation is considered more risky than a fund with a lower standard deviation. The standard deviation for the American Century Equity Growth fund and the standard deviation for the Fidelity Growth Discovery fund were recently reported to be 15.0% and 18.9%, respectively. Assume that each of these standard deviations is based on a sample of 60 months of returns. Do the sample results support the conclusion that the Fidelity fund has a larger population variance than the American Century fund? Which fund is more risky? (17. ) Most individuals are aware of the fact that the average annual repair cost for an auto- mobile depends on the age of the automobile. A researcher is interested in finding out whether the variance of the annual repair costs also increases with the age of the auto- mobile. A sample of 26…

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The expected return on market portfolio is 8.50 per cent with a Standard deviation of 3. The RF is 5 per cent. Which portfolio has performed as the best?