Calculate the market price of risk aka the sharpe ratio

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Assume that you can borrow and lend at a risk-less rate of 5% and that the tangency portfolio of risky assets has an expected return of 13% and a standard deviation of return of 16%. Calculate the market price of risk, aka the Sharpe ratio, for this portfolio. Hint this is the slope of the CML for the risky portfolio.

Reference no: EM132667018

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