Assuming a standard deviation on the risky asset is 122


You have two assets in your portfolio. the risk free asset offering a return of 3% and the risky asset offering a risk premium of 5%. You invest 60% of your portfolio in the risk free asset, what is the return on your portfolio. Assuming a standard deviation on the risky asset is 122%, what is the sharpe ratio of this portfolio? Will the Sharpe ratio change as your weightings change?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Assuming a standard deviation on the risky asset is 122
Reference No:- TGS02745374

Expected delivery within 24 Hours