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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?
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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
calculate and interpret the Sharpe ratio, Treynor ratio, M2, and Jensen's alpha
CFA® 2024 Level I Curriculum, Volume 2, Module 2.