Define the sharpe ratio using the number resulted

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Problem a. What is the Sharpe ratio if the E(Rp) = 13%, the standard deviation for the portfolio is 19%, and the risk-free rate is 4.5%?

Problem b. Given the number you calculated from part a, explain what this number (the Sharpe ratio) tells you? In other words, define the Sharpe ratio using the number resulted from part a's calculation.

Reference no: EM132770989

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