Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the market consists of a risk-free asset with retu

The market consists of a risk-free asset with return of 5%, and two risky assets:...

50.1K

Verified Solution

Question

Finance

image

The market consists of a risk-free asset with return of 5%, and two risky assets: stock fund with an expected return of 20% and standard deviation of 38%, and a bond fund with the expected return of 11% and standard deviation of 18%. The correlation between stock and bond funds is -20%. What is the maximum Sharpe ratio that can be obtained in this market

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

Operations Management
1.2K views

What are current trends that you see in our society today? List five to six trends.

General Management
1.2K views

How might the DMAIC be used in your personal life? In your dream job? (Min 400...

Physics
1.2K views

38 A body is executing SHM At a displacement x its potential energy is E...

Calculus
1.2K views

Find the points on the curve y = x + 3x^2 - 9x + 8...

Algebra
1.2K views

In the graph below the coordinates of the indicated point are 1 1 45 Construct...

Accounting
1.2K views

A firm pays a...

Accounting
1.2K views

How can you filter the For Review tab to see all the transactions QuickBooks Online...

Accounting
1.2K views

Week 1 Question (10 marks) Differentiate between a sole trader, company and a partnership. Support...

Accounting
1.2K views

Tonys favorite memories of his childhood were the times he spent with his dad at...

Finance
1.2K views

a). Zelle Corp. had a net profit margin of 5% last year and an equity...

Accounting
1.2K views

Durante 2020, Vaughn Manufacturing incurri en gastos acumulados promedio ponderados de $1730000 durante la construccin...

Finance
1.2K views

What's the FCFF of a company with total revenues of $200 million, gross profit margin...