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

question 79

Multiple Choice

A portfolio consists of the following two funds:
$\begin{array}{lrr}&\text { Fund A }& \text { Fund B }\\\text { Expected Return } & 16 \% & 9\% \\\text { Standard deviation } & 21 \% & 11\% \\\text { Portfolio market value } & \$ 27,000 & \$ 33,000\\\text {Weight}&45\%&55\%\\\text {Correlation}{R}_A,{R}_B&0.21\\\text { Rigk-free rate }&2.5\%\end{array}$
What is the Sharpe ratio of the portfolio?

• A).333%
• B).425%
• C).635%
• D).788%
• E).838%

---

Definitions:

Destructive Environments

Environments that negatively impact living conditions and biodiversity through pollution, habitat destruction, and climate change.

Frances Willard

An American educator, temperance reformer, and women's suffragist who became president of the Woman's Christian Temperance Union (WCTU) in 1879.

WCTU

The Woman's Christian Temperance Union, an organization that was instrumental in the temperance movement, advocating for the prohibition of alcohol.