Find what is the sharp ratio

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Problem 1: Consider when you decide to invest 40% of your money in risky portfolio P( with the expected return of 25% and standard deviation of 20%) and invest 60% of your money into a treasury bill) the rate of the TBill is 5%). Assume that in thi s investment you use all the money you have on your own without borrowing from outside. What's the sharp ratio?

Option 1: 0.670

Option 2: 1.000

Option 3: 1.625

Option 4: 0.400

Reference no: EM132969620

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