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Memphic Memphic
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Posts: 728
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6 years ago
The Sharpe Ratio for Rearden Metal is closest to:
A) 0.40
B) 0.56
C) 0.80
D) 1.00
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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1 Reply

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Replies
wrote...
6 years ago
A
Explanation:  A)  βRM =   =   = 0.75
ri = rf + βi(Rm - rf) = .04 + 0.75(.12 - .04) = .10 or 10.00%
Sharpe Ratio =   =   = 0.40
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