Use the following scenario analysis for stocks X and Y to answer the questions. Bear Normal...

Use the following scenario analysis for stocks X and Y to answer the questions.

	Bear	Normal	Bull
	Market	Market	Market
Probability	35.00%	55.00%	10.00%
Stock X	-28.00%	9.00%	30.00%
Stock Y	-16.00%	15.00%	50.00%

Assume you have a $200,000 portfolio and you invest $80,000 in stock X and the remainder in stock Y. If the risk–free rate of return is 3.75%, and we assume that the standard deviation of the excess returns on the portfolio is 15%, what is the Sharpe Ratio for this portfolio formed from stocks X and Y? Enter your answer rounded to two decimal places. For example, if your answer is 123.45% or 1.2345 then enter as 1.23 in the answer box.

Use the following scenario analysis for stocks X and Y to answer the questions.

	Bear	Normal	Bull
	Market	Market	Market
Probability	35.00%	55.00%	10.00%
Stock X	-28.00%	9.00%	30.00%
Stock Y	-16.00%	15.00%	50.00%

Assume you have a $200,000 portfolio and you invest $80,000 in stock X and the remainder in stock Y. What is the expected return for this portfolio? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.

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jeff jeffy answered 1 year ago

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