CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

Assume the risk-free rate is 3%. The expected return on the market portfolio is 18% and its standard deviation is 20%. A company has an expected return of 22%, a standard deviation of 30%, and a correlation of 0.9 with the market. What is the company's Sharpe ratio?
A. 0.5
B. 0.633
C. 0.95
Explanation: (22% - 3%) / 30% = 0.633

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