Consider the following Information: Portfolio ER SD Risk Free Market 6.00 13.2 A 11.2 a. Calculate the Sharpe ratios for the market portfolio and portfolio A Sharpe Ratio=(Return on portfolio-Riskfreerate)/SD Market Portfo 0.2 Portfolio A 0.21 2.1 b. If the simple CAPM is valid. is the above situation possible? 0.00 36 25 Beta Market Beta A
Consider the following Information: Portfolio ER SD Risk Free Market 6.00 13.2 A 11.2 a. Calculate the Sharpe ratios for the market portfolio and portfolio A Sharpe Ratio=(Return on portfolio-Riskfreerate)/SD Market Portfo 0.2 Portfolio A 0.21 2.1 b. If the simple CAPM is valid. is the above situation possible? 0.00 36 25 Beta Market Beta A
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Question 7
Consider the following Information:
Portfolio
ER
Risk Free
Market
SD
6.00
13.2
A
11.2
a. Calculate the Sharpe ratios for the market portfolio and portfolio A
Sharpe Ratio=(Return on portfolio-Riskfreerate)/SD
Market Portfo
0.2
Portfolio A
0.21
2.1
b. If the simple CAPM is valid, is the above situation possible?
0.00
36
25
Beta Market
Beta A](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0be9fc17-b0ba-45e9-935b-8ef099ba771b%2F8f9aef55-d0de-4982-a763-85738686aa5f%2F6n9k56p_processed.png&w=3840&q=75)
Transcribed Image Text:Question 7
Consider the following Information:
Portfolio
ER
Risk Free
Market
SD
6.00
13.2
A
11.2
a. Calculate the Sharpe ratios for the market portfolio and portfolio A
Sharpe Ratio=(Return on portfolio-Riskfreerate)/SD
Market Portfo
0.2
Portfolio A
0.21
2.1
b. If the simple CAPM is valid, is the above situation possible?
0.00
36
25
Beta Market
Beta A
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