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Portfolio Weight 0.25 Correlation w Market Portfolio 0.7 0.6 0.5 Volatility 14% 18% 15% Firm Taggart Transcontinental Wyatt OHow do you get this answer?

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Answer #1

Sharpe Ratio = [E(r) - rF] / S.D. = [12% - 4%] / 10% = 8%/10% = 0.8

Hence, Option "D" is correct.

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