Poul Incorporated's actively managed mutual fund generated a rate of return of 0.08 last year. The...
Poul Incorporated's actively managed mutual fund generated a rate of return of 0.08 last year. The U.S. T-Bill rate is 0.03, and Poul's standard deviation is 0.16. What is the Poul fund's Sharp Ratio?
Homework Answers
Sharpe ratio=(Expected portfolio return - Risk free
rate)/(Standard deviation)
Here, the t-bill is considered as risk free asset
=(0.08-0.03)/(0.16)
=0.3125
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Poul Incorporated's actively managed mutual fund generated a
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