Question

Yaris Fund has the following statistics: Expected return = 25% and Standard deviation = 30%. The Market’s Expected return is 12% with a Standard Deviation of 22.5%. The Risk Free rate is 5%. What is Yaris Fund’s Coefficient of Variation?

A). 1.200

B). 0.833

C). 0.533

D). 0.667

What is Yaris Fund’s Sharpe Ratio?

A). 1.200

B). 0.833

C). 0.533

D). 0.667

Answer 1

Coefficient of Variation =Standard Deviation/Expected Return =30%/25% =1.2 (Option a is correct option)

Yaris Fund's Sharpe Ratio =(Expected Return-Risk Free Rate)/Standard Deviation =(25%-5%)/30% =0.667 (Option d is correct option)