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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 using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
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.