Ask Question
20 July, 13:39

An investor ponders various allocations to the optimal risky portfolio and risk-free T-bills to construct his/her complete portfolio. How would the Sharpe ration of the complete portfolio be affected by this choice?

+2
Answers (1)
  1. 20 July, 17:25
    0
    The expected return of the portfolio will be impacted.

    Explanation:

    For financial, after modification of the risk, the Sharpe ratio calculates investments ' success relative to a risk free asset. The disparity between investment returns and risk-free returns is specified, divided between the regular investment deviations.

    If the asset distribution has shifted, the projected return on the portfolio would be affected. Since the estimated portfolio gain is the first element in the Sharpe ratio numerator, this ratio is modified.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “An investor ponders various allocations to the optimal risky portfolio and risk-free T-bills to construct his/her complete portfolio. How ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers