Congratulations! Your portfolio returned 12.7% last year, 1.9% better than the market return of 10.8%....
70.2K
Verified Solution
Link Copied!
Question
Finance
Congratulations! Your portfolio returned 12.7% last year, 1.9% better than the market return of 10.8%. Your portfolio had a standard deviation of earnings equal to 18%, and the risk-free rate is equal to 5.1%. Calculate Sharpe's measure for your portfolio. If the market's Sharpe's measure is 0.32, did you do better or worse than the market from a risk/return perspective?
The Sharpe's measure of your portfolio is (round to two decimal places)
Your portfolio's performance is (Superior , Inferior or Equal) to the market's performance.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
