Answer: 1.07

The Sharpe ratio is calculated as: **Sharpe Ratio = (Portfolio Return - Risk-Free Return) / Standard Deviation of Portfolio** Given: - Portfolio return = 22% - Risk-free return = 6% - Standard deviation = 15% Calculation: Sharpe Ratio = (22% - 6%) / 15% = 16% / 15% = 1.07 This means the portfolio generates 1.07 units of excess return per unit of risk (standard deviation). The Sharpe ratio is a key risk-adjusted performance measure in portfolio management.

Author: Tanishq Prabhu