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The Sharpe ratio compares the asset's realized excess return to its standard deviation over a...

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The Sharpe ratio compares the asset's realized excess return to its standard deviation over a specified period. Excess returns above the risk-free rate - so investments with returns equal to the risk-free rate will have a zero Sharpe ratio. It follows tha higher Sharpe ratios performed better, because they generated higher higher excess returns per unit of risk. The Sharpe ral Sharpe ratio = (Return - Risk-free rate) Quantitative Problem: You are given the following probability distribution for CHC Enterprises: State of Economy Probability. Rate of return Strong Normal Weak 0.15 0.50 0.35 22% 8% -496 What is the stock's expected return? Do not round intermediate calculations. Round your answer to two decimal places. What is the stock's standard deviation? Do not round Intermediate calculations. Round your answer to two decimal places. What is the stock's coefficient of variation? Do not round Intermediate calculations. Round your answer to two decimal places. Grade New Save & Comme Continue without saving

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