To increase the Sharpe ratio for a portfolio, an investor would have to add which one of the following?
A) stocks that increase expected return of the portfolio
B) stocks that decrease expected return of the portfolio
C) stocks that increase the volatility of the portfolio
D) stocks that increase the correlation with other stocks in the portfolio
Answer: A
Business
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On June 1, 2013, Romano Inc. changed the estimated useful life of its office equipment from 20 to 12 years. This change would be accounted for:
A. Prospectively. B. Retrospectively. C. As an accounting error. D. None of these.
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What is observational research and when is it used?
What will be an ideal response?
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