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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 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
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
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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