While all the other data given in Table 8.1 are remaining the same, and the alpha forecasts of row 39 are doubled; recalculate the optimal risky portfolio. Introduction: Information Ratio is used to measure the returns of a portfolio outside the benchmark returns. Sharpe Ratio helps investors in comparing the returns of an investment with the risk involved in such an investment.

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Chapter 8, Problem 20PS

Summary Introduction

To determine: While all the other data given in Table 8.1 are remaining the same, and the alpha forecasts of row 39 are doubled; recalculate the optimal risky portfolio.

Introduction: Information Ratio is used to measure the returns of a portfolio outside the benchmark returns. Sharpe Ratio helps investors in comparing the returns of an investment with the risk involved in such an investment.

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