If a portfolio loaded with cyclical securities has a sharpe


If a portfolio loaded with cyclical securities has a Sharpe ratio higher than the S&P 500, measured over the last year – which has been during an expansion, and economic conditions are expected to deteriorate, would next year’s Sharpe ratio be expected to continue to outperform the market? Why or why not?

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Financial Management: If a portfolio loaded with cyclical securities has a sharpe
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