What will be the sharpe ratio of your portfolio

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Question: You are working on the asset allocation within your retirement portfolio. You would like to construct a portfolio to generate an annual return of 7.4%, optimized to provide the greatest return for the level of risk taken. You remember from BFM (hopefully) that you can do this by holding some combination of the market portfolio and risk-free securities. The expected annual return on the market portfolio is 9.48% and the standard deviation of returns is 16.51%. The risk-free rate is 3.31%.

what will be the sharpe ratio of your portfolio

Reference no: EM133491890

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