Q1. State true or false The Sharpe ratio is the ratio of the risk...

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Finance

Q1. State true or false

  1. The Sharpe ratio is the ratio of the risk premium of the risky asset portfolio over its variance.
  2. The complete portfolio refers to the investment in the risk-free asset and a portfolio of risky assets.
  3. The dollar weighted return is the difference between cash inflows and cash outflows.
  4. Annual percentage rates can be converted to effective annual rates by means of the formula: [1 + (APR/n)]n 1.
  5. The market risk premium is defined as the difference between the return on the highest yielding asset and the return on the lowest yielding asset.

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