Assume that you put 67% of your wealth in Tesla stock and the rest of...

60.1K

Verified Solution

Question

Finance

Assume that you put 67% of your wealth in Tesla stock and the rest of your wealth in the risk-free treasury bill. You believe Tesla has an expected return of 12.8% and the risk-free rate has an expected return of 1.6%. You also know that Tesla has a variance of 15.9%. What is the expected Sharpe Ratio of your portfolio? Enter you answer with two decimal points (i.e., 0.45 or 0.78 or 1.23).

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students