A portfolio has an average return of 12.4 percent,a standard deviation of 15.8 percent,and a beta of 1.35.The risk-free rate is 2.6 percent.What is the Sharpe ratio?
A).49
B).52
C).62
D).71
E).75

Name: A portfolio has an average return of 12.4 percent,a standard deviation of 15.8 percent,and a beta of 1.35.The risk-free rate is 2.6 percent.What is the Sharpe ratio? A).49 B).52 C).62 D).71 E).75
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Quizplus · Accepted Answer

Sharpe ratio = (.124 - .026)/.158 = .62

A Portfolio Has an Average Return of 12