Vanguard international has a Sharp ratio of 0.5 and expected return of 28%. Vanguard Domestic has a Sharpe ratio of 0.7 and expected return of 18%. If you are looking to construct a portfolio with one risk-free and one of funds and you are a risk averse investor which fund would your choose. OA) Vanguard domestic OB) Vanguard International OC) Allocate 50% to each fund O D) None of the funds OF None of the above
Vanguard international has a Sharp ratio of 0.5 and expected return of 28%. Vanguard Domestic has a Sharpe ratio of 0.7 and expected return of 18%. If you are looking to construct a portfolio with one risk-free and one of funds and you are a risk averse investor which fund would your choose. OA) Vanguard domestic OB) Vanguard International OC) Allocate 50% to each fund O D) None of the funds OF None of the above
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Vanguard international has a Sharp ratio of 0.5 and expected return of 28%. Vanguard Domestic has a Sharpe ratio of 0.7 and expected return of 18%. If you are
looking to construct a portfolio with one risk-free and one of funds and you are a risk averse investor which fund would your choose.
OA) Vanguard domestic
OB) Vanguard International
O C) Allocate 50% to each fund
OD) None of the funds
O E) None of the above](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd09a6c04-5153-4a57-9da1-217727883a7a%2F86036462-f54b-47c0-bdf3-ec1ab786ba89%2F11twbrj_processed.png&w=3840&q=75)
Transcribed Image Text:Vanguard international has a Sharp ratio of 0.5 and expected return of 28%. Vanguard Domestic has a Sharpe ratio of 0.7 and expected return of 18%. If you are
looking to construct a portfolio with one risk-free and one of funds and you are a risk averse investor which fund would your choose.
OA) Vanguard domestic
OB) Vanguard International
O C) Allocate 50% to each fund
OD) None of the funds
O E) None of the above
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