Q: Please refer to the previous question to answer this question. What is the correct value of the Sharpe Ratio of the portfolio (sigma p)?
The Sharpe ratio compares the return of an investment with its risk. It's a mathematical expression of the insight that excess returns over a period of time may signify more volatility and risk, rather than investing skill.
The signature of the function should be like:
def sharp_ratio(risk, sd_1,premium,):
er = risk rf = premium sd_1 = standard deviation
Use the formula, sharp ratio = (risk- premium)/ standard deviation of portfolio s.
Note - Having trouble with the assessment engine? Follow the steps listed here
Loading comments...