Why should I choose AnalystNotes?
AnalystNotes specializes in helping candidates pass. Period.
Basic Question 3 of 8
Assume the risk-free rate is 4%. The expected return on the market portfolio is 15%, and its standard deviation is 20%. A company has an expected return of 25%, a standard deviation of 40% and a correlation of 0.8 with the market. What is the company's Sharpe ratio?
User Contributed Comments 0
You need to log in first to add your comment.
Your review questions and global ranking system were so helpful.
Lina
Learning Outcome Statements
calculate and interpret the Sharpe ratio, Treynor ratio, M2, and Jensen's alpha
CFA® 2025 Level I Curriculum, Volume 2, Module 2.