What is the sharpe ratio, The standard deviation of the

What is the sharpe ratio

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Reference no: EM132029051

1. You are looking at a portfolio with an expected return of 14%, vs. the risk free rate of 4%. The standard deviation of the portfolio is 13%. What is the Sharpe ratio?

2. You are investing in two assets—a risk free asset with a return of 2% and a risky portfolio with a return of 10% and a standard deviation of 12%. Assuming you invest 30% in the risk free asset and 70% in the risky asset, what is the return and standard deviation of your portfolio? What is your Sharpe ratio?

Reference no: EM132029051

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