The table below gives the after-fee performance of the vector fund and the Market portfolio: Asset Vector fund Market portfolio Risk-free asset 4.5% E(r) B de alpha 15% 24% 1.32 5% Answer: 2.1% 10.5% 20% What is the Sharpe Ratio of the optimal portfolio of risky assets that invests in the Market Portfolio and the "Vector Fund? Enter your answer to 3 decimal places eg if your answer is 0.4571 enter as 0.457. If your answer is 0.4 enter as 0.400
The table below gives the after-fee performance of the vector fund and the Market portfolio: Asset Vector fund Market portfolio Risk-free asset 4.5% E(r) B de alpha 15% 24% 1.32 5% Answer: 2.1% 10.5% 20% What is the Sharpe Ratio of the optimal portfolio of risky assets that invests in the Market Portfolio and the "Vector Fund? Enter your answer to 3 decimal places eg if your answer is 0.4571 enter as 0.457. If your answer is 0.4 enter as 0.400
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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![The table below gives the after-fee performance of the Vector fund and the Market portfolio:
Asset Vector fund Market portfolio Risk-free asset
E(r)
15%
4.5%
24%
1.32
B
%c
alpha
5%
2.1%
Answer:
10.5%
20%
What is the Sharpe Ratio of the optimal portfolio of risky assets that invests in the Market Portfolio and the
Vector Fund?
Enter your answer to 3 decimal places eg if your answer is 0.4571 enter as 0.457. If your answer is 0.4 enter
as 0.400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01d01b29-ede7-42ba-8dcd-8c0b18e94cc8%2Fb2f199be-7a3b-4ab7-af36-4b3da9587a46%2Fk5v3frr_processed.png&w=3840&q=75)
Transcribed Image Text:The table below gives the after-fee performance of the Vector fund and the Market portfolio:
Asset Vector fund Market portfolio Risk-free asset
E(r)
15%
4.5%
24%
1.32
B
%c
alpha
5%
2.1%
Answer:
10.5%
20%
What is the Sharpe Ratio of the optimal portfolio of risky assets that invests in the Market Portfolio and the
Vector Fund?
Enter your answer to 3 decimal places eg if your answer is 0.4571 enter as 0.457. If your answer is 0.4 enter
as 0.400
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