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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)?
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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.

- Define a function with the name "sharp_ratio" which will take arguments, risk, premium and standard deviation of portfolio S.
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.

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