TABLE 16.1
Use the information to answer following question(s).

-Refer to Table 16.1. What is the value of the Sharpe Measure for France?
A) 0.113
B) 0.0071
C) Either A or B
D) Neither A nor B

Question

TABLE 16.1
Use the information to answer following question(s).
 
-Refer to Table 16.1. What is the value of the Sharpe Measure for France?
A) 0.113 
B) 0.0071 
C) Either A or B 
D) Neither A nor B

Quizplus · Accepted Answer

The Sharpe Measure is calculated by subtracting the risk-free rate of return from the average return of the asset (in this case, the French stock market index) and dividing the result by the standard deviation of the returns. Using the numbers from Table 16.1, the Sharpe Measure for France is found by (0.059 - 0.040) / 0.414 = 0.113. Therefore, the value of the Sharpe Measure for France is 0.113, which is option A.

TABLE 16.1 Use the Information to Answer Following Question(s)