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Congratulations! Your portfolio returned 9.1?% last? year, 2.3?% better than the market return of 6.8?%. Your...

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Finance

Congratulations! Your portfolio returned 9.1?% last? year, 2.3?%better than the market return of 6.8?%. Your portfolio had astandard deviation of earnings equal to 21?%, and the? risk-freerate is equal to 4.1?%. Calculate? Sharpe's measure for yourportfolio. If the? market's Sharpe's measure is 0.38?, did you dobetter or worse than the market from a? risk/returnperspective?

The? Sharpe's measure of your portfolio is ____ (Round to twodecimal? places.)

Your? portfolio's performance is ___

equal

inferior

superior

to the? market's performance. ? (Select from the? drop-downmenu.)

Answer & Explanation Solved by verified expert
4.1 Ratings (772 Votes)
Sharpe RatioRpRf p where Rp is the expected return on the asset or portfolio Rf is the riskfree rate of return and p is the standard deviation of portfolios excess return The Sharpe ratio is calculated by    See Answer
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