None 11. Briefly answer the following question:Suppose that portfolio A has a monthly Sharpe ratio of 0.2 andportfolio B has an annual Sharpe ratio of 0.5. Which portfolio had the best performance according to the Sharpe ratio?12. Considering the following table below. Calculate the volatility (standard deviation) of this portfolio. Calculate theexpected return of this portfolio. Use arrays and add it in Excel file [8 points] \table[[Asset 1, Asset 2, Asset 3, Asset4], [E(R) = 0.15, E(R) = 0= 0.16, E(R) = 0.17,E(R) = 0.14Asset 1E(R₁) 0.15E(σ1) 0.13X₁ =?1,2012.40.6Asset 2E(R2)=0.16E(02)=0.13X2=0.251,3 0.313.4 -0.1งCAsset 3Asset 4E(R3)0.17E(03)0.14E(R4) 0.14E(04)=0.09X3 = 0.25X4 = 0.3T1.4 0.212,3=0.4

Part 2: Explanation:Step 1: To calculate the volatility (standard deviation) of the portfolio, we…

Answered: 11. Briefly answer the following…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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