A Portfolio Consists of the Following Two Funds What Is the Sharpe Ratio of the Portfolio?
A)

question 6

Multiple Choice

A portfolio consists of the following two funds:
$\begin{array}{lrr}&\text { Fund A }& \text { Fund B }\\\text { Expected Return } & 13 \% & 9\% \\\text { Standard deviation } & 16 \% & 10\% \\\text { Eortfolio market value } & \$ 6,000 & \$ 14,000\\\text {Correlation}{R}_A,{R}_B&0.54\\\text { Rigk-free rate }&4\%\end{array}$
What is the Sharpe ratio of the portfolio?

• A).391
• B).453
• C).529
• D).596
• E).640

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Definitions:

Vertebrae

The individual bones that make up the vertebral column or spine, providing structural support to the body and protecting the spinal cord.

Coccyx

The small, triangular bone at the base of the spinal column, often called the tailbone.

Sacrum

A large, triangular bone at the base of the spine, below the lumbar vertebrae and above the coccyx, forming part of the pelvis.

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, often measured for diagnostic purposes.