If the expected return on a risky asset is 13%, standard deviation is 25%, and the risk free asset 5%.

Calculate the expected return , standard deviation, sharp ratio for the complete portfolio with y= .60

Expert Solution

Expected return=0.60*13%+(1-0.60)*5%=9.8000%

Standard deviation=0.60*25%=15.0000%

Sharpe Ratio=(9.8000%-5%)/15.0000%=0.3200000

jeff jeffy answered 2 years ago

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