Firm Portfolio Weight Volatility Correlation w/ Market Portfolio Taggart Transcontinental 0.25 14% 0.7 Wyatt Oil 0.35 18% 0.6 Rearden Metal 0.40 15% 0.5   The volatility of the market portfolio is 10%, the expected return on the market is 12%, and the risk-free rate of interest is 4%. The Sharpe Ratio for the market portfolio is closest to?

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
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Firm

Portfolio

Weight

Volatility

Correlation w/

Market Portfolio

Taggart Transcontinental

0.25

14%

0.7

Wyatt Oil

0.35

18%

0.6

Rearden Metal

0.40

15%

0.5

 

The volatility of the market portfolio is 10%, the expected return on the market is 12%, and the risk-free rate of interest is 4%. The Sharpe Ratio for the market portfolio is closest to?

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