Given the annual average return of a portfolio is 8.3% and the standard deviation is 17.57%....
Given the annual average return of a portfolio is 8.3% and the standard deviation is 17.57%. With a 3% risk-free rate, calculate the Sharpe ratio of this portfolio.
(Give the answer up to 2 decimal places)
Homework Answers
Sharpe ratio of portfolio is :
( Return of portfolio - risk free rate) / standard deviation of portfolio
= ( 8.3 % - 3%) / 17.57%
= O.053/0.1757
= 30.17%
So, the Sharpe ratio of this portfolio is 30.17%.
Add Answer to:
Given the annual average return of a portfolio is 8.3% and the
standard deviation is 17.57%....
1) A stock has generated an annual average return of 9.5% with a standard deviation of...
1) A stock has generated an annual average return of 9.5% with a standard deviation of 40.7% during the last 10 years. If the average risk-free rate was 1.7%, what was this stock's Sharpe Ratio? Round to two decimal places. 2) The standard deviation of a stock's annual returns is 40.4%. The standard deviation of market returns is 24.3%. If the correlation between the returns of the stock and the market is 0.3, what is this stock's beta? Round to...
last chance A stock has generated an annual average return of 8.0% with a standard deviation...
last chance
A stock has generated an annual average return of 8.0% with a standard deviation of 45.0% during the last 10 years. If the average risk-free rate was 1.6%, what was this stock's Sharpe Ratio? Round to two decimal places. Numeric Answer: 14.22 You are incorrect 14.22
3710 (1.) Consider the following information: Portfolio Risk-free Market Expected Standard Return Deviation 10% 18 24...
3710 (1.)
Consider the following information: Portfolio Risk-free Market Expected Standard Return Deviation 10% 18 24 20 22 a. Calculate the Sharpe ratios for the market portfolio and portfolio A. (Round your answers to 2 decimal places.) Sharpe Ratio Market portfolio Portfolio A
Consider the following information: Portfolio Expected Return Standard Deviation Risk-free 5.0 % 0 % Market 10.6...
Consider the following information: Portfolio Expected Return Standard Deviation Risk-free 5.0 % 0 % Market 10.6 23 A 8.6 12 a. Calculate the Sharpe ratios for the market portfolio and portfolio A. (Round your answers to 2 decimal places.) Sharpe Ratio Market portfolio Portfolio A b. If the simple CAPM is valid, is the above situation possible? y/n
13. Consider a Market Portfolio with 12% expected return and 20% return standard deviation. If the...
13. Consider a Market Portfolio with 12% expected return and 20% return standard deviation. If the Sharpe ratio of the market portfolio is 0.5, what is the risk-free rate of return? (a) 0.01 (b) 0.02 (c) 0.03 (d) 0.04
You manage a risky portfolio with an expected return of 12% and a standard deviation of 24%. Assume that you can invest...
You manage a risky portfolio with an expected return of 12% and a standard deviation of 24%. Assume that you can invest and borrow at a risk-free rate of 3%, using T-bills. a. Draw the Capital Allocation Line (CAL) for this combination of risky portfolio and risk-free asset. What is the Sharpe ratio of the risky portfolio? b. Your client chooses to invest 50% of their funds into your risky portfolio and 50% risk-free. What is the expected return and...
1. Your investment portfolio had an annualized standard deviation of 28%, a beta of 1.1, an...
1. Your investment portfolio had an annualized standard deviation of 28%, a beta of 1.1, an expected annual return of 11%, and an actual annual return of -20%. The average annual risk-free rate in the economy during that period was 4%. What was your portfolio's Sharpe Ratio? Write your answer out to three decimals - for example, write 16.2% as .162. 2. Your investment has a standard deviation of per-period returns of 33%. What is the standard deviation over 5...
a. The expected rate of return for portfolio A is The standard deviation of portfolio A...
a. The expected rate of return for portfolio A is
The standard deviation of portfolio A is
a. The expected rate of return for portfolio B is
The standard deviation of portfolio B is
Score: 0 of 1 pt | 4 of 9 (2 complete) HW Score: 22.22%, 2 of 9 pts P8-7 (similar to) :& Question Help (Computing the expected rate of return and risk) After a tumultuous period in the stock market, Logan Morgan is considering an investment...
Consider the following information: Portfolio Expected Return Standard Deviation Risk-free 6 % 0 % Market 10.8 2...
Consider the following information: Portfolio Expected Return Standard Deviation Risk-free 6 % 0 % Market 10.8 24 A 8.8 13 a. Calculate the Sharpe ratios for the market portfolio and portfolio A. (Round your answers to 2 decimal places.) b. If the simple CAPM is valid, is the above situation possible? Yes No
A portfolio generates an annual return of 23.5%, a beta of 0.5, and a standard deviation...
A portfolio generates an annual return of 23.5%, a beta of 0.5, and a standard deviation of 25.5%. The market index return is 19.0% and has a standard deviation of 23.5%. What is the M2 measure of the portfolio if the risk-free rate is 4%? 2.72% 2.17% 2.97% 3.23%
last chance
A stock has generated an annual average return of 8.0% with a standard deviation of 45.0% during the last 10 years. If the average risk-free rate was 1.6%, what was this stock's Sharpe Ratio? Round to two decimal places. Numeric Answer: 14.22 You are incorrect 14.22
3710 (1.)
Consider the following information: Portfolio Risk-free Market Expected Standard Return Deviation 10% 18 24 20 22 a. Calculate the Sharpe ratios for the market portfolio and portfolio A. (Round your answers to 2 decimal places.) Sharpe Ratio Market portfolio Portfolio A
13. Consider a Market Portfolio with 12% expected return and 20% return standard deviation. If the Sharpe ratio of the market portfolio is 0.5, what is the risk-free rate of return? (a) 0.01 (b) 0.02 (c) 0.03 (d) 0.04
a. The expected rate of return for portfolio A is
The standard deviation of portfolio A is
a. The expected rate of return for portfolio B is
The standard deviation of portfolio B is
Score: 0 of 1 pt | 4 of 9 (2 complete) HW Score: 22.22%, 2 of 9 pts P8-7 (similar to) :& Question Help (Computing the expected rate of return and risk) After a tumultuous period in the stock market, Logan Morgan is considering an investment...
Most questions answered within 3 hours.
-
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 55 minutes ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 57 minutes ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 1 hour ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 1 hour ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 1 hour ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 1 hour ago -
Given the information in the table, which of the following
statements is CORRECT?
Stock A
Stock...
asked 1 hour ago -
Write MARIE assembly language programs that do the following:
Write a program that inputs an integer...
asked 1 hour ago -
Explain an understanding of services and protocols.
Explain the job of DNS.
Explain the three email...
asked 1 hour ago -
(As soon as possible) Balance each of the following equations
according to the half-reaction method:
H2O2(aq)...
asked 2 hours ago -
A thin rod with a mass of 3.5kg and a length L=1.5 m is oriented
horizontally....
asked 1 hour ago -
Inheritance pattern in BRCA 1
Describe the inheritance pattern of BRCA 1 Is it recessive or...
asked 1 hour ago