Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Over the next year, the stock market will either be a bull market or a bear market. The probability of a bull market is 64.00%, while the probability of a bear market is 36.00%. Shares in Meguire and Company will have a return of 22.20% in a bull market, and -10.60% in a bear market. The risk-free rate is 3.00%. What is the Sharpe Ratio of Meguire and Company shares?
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expected return of a stock with different probability of return is:
Standrad deviation of the stock is:
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