You are evaluating the performance of a portfolio of Mexican equities that is benchmarked to the IPC Index. You collect the information about the portfolio and the benchmark index shown in the table below (2014):

Item Value
Expected return on the portfolio 6.6%
Volatility of returns on the portfolio 13.1%
Expected return on the IPC Index 4.0%
Volatility of returns on the IPC Index 8.7%
Risk-free rate of return 1.5%
Beta of portfolio relative to IPC Index 1.4

What is the Sharpe ratio for this portfolio? (Show computations and select the correct option.)

Item	Value
Expected return on the portfolio	6.6%
Volatility of returns on the portfolio	13.1%
Expected return on the IPC Index	4.0%
Volatility of returns on the IPC Index	8.7%
Risk-free rate of return	1.5%
Beta of portfolio relative to IPC Index	1.4

Exam-Like

UAnonymous

Powered ByGPT-5

Financial Risk Manager Part 1