Give detailed explanations and process for both of the following que

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School
Western Sydney University **We aren't endorsed by this school
Course
FINANCE MISC
Subject
Finance
Date
Nov 17, 2023
Pages
1
Uploaded by CaptainFlagWildcat28 on coursehero.com
Give detailed explanations and process for both of the following questions, choose the correct answers and show details: Portfolio Kappa has an average return of 18% and standard deviation of returns (total) of 29%. The idiosyncratic standard deviation of returns of Kappa is 22%, and the risk-free rate is 3%. Calculate its Sharpe ratio to the nearest decimal. Options: -0.09 0.41 0.52 0.75 1.20 Then, using the correct answer you got from last question, calculate Famas measure for portfolio Kappa (to the nearest decimal). The average return of the market portfolio is 15%, and the standard deviation of the returns of the market portfolio is 17%. Options: -0.10 -0.05 0.05 0.13 0.26
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Uploaded by CaptainFlagWildcat28 on coursehero.com