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if the standard deviation of a fund returns is 13.35 and the return is 6% but the risk-free return in the market is 4.5% find the reward-to-variability ratio

if the standard deviation of a fund returns is 13.35 and the return is 6% but the risk-free return in the market is 4.5% find the reward-to-variability ratio.
would the standard deviation be the same as 13.35%? if so would the RVR= 11.23%? and would the formula look like this RVR=1/.1335(.06-.045)
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1 Answer

This is also known as the Sharpe ratio, named after its formulator William Sharp.
 
In symbols S = [E(R- Rb)]/σ
 
σ is the standard deviation, Ra is the asset return and Rb the "risk free" return.
 
In this case
 
S = (6 - 4.5)/13.35 = 0.11