Calculate reward-to-volatility ratio

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Problem 1: An investor has AU$200,000 to invest. She borrowed an additional AU$100,000 at risk-free rate and invest the entire amount in a risky portfolio. Risk-free rate is 4%, and return and standard deviation of the risky portfolio are 10% and 18% respectively. Calculate reward-to-volatility ratio.

Reference no: EM132913110

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