Question

Draw the capital allocation line and show that its slope is the sharp ratio.

Draw the capital allocation line and show that its slope is the sharp ratio.

Homework Answers

Answer #1

CAPITAL ALLOCATION LINE IS THE GRAPHICAL REPRESENTATION OF RISK REWARD PROFILE OF ASSET . ITS SLOPE SHOWS THE EXTRA RETURN PER EXTRA RISK WHICH IS CALLED THE SHARPE RATIO . PLEASE FIND THE ATTACHED IMAGES.

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