Business, 22.04.2020 04:27, lindseylewis313

The Optima Mutual Fund has an expected return of 20.0 % and a volatility of 20.0 %. Optima claims that no other portfolio offers a higher Sharpe ratio. Suppose this claim is true, and the risk-free interest rate is 5.0 %. a. What is Optima's Sharpe ratio? b. If eBay's stock has a volatility of 40.0 % and an expected return of 11.0 %, what must be its correlation with the Optima Fund? c. If the SubOptima Fund has a correlation of 80 % with the Optima Fund, what is the Sharpe ratio of the SubOptima Fund? a. What is Optima's Sharpe ratio? The Sharpe ratio is

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The Optima Mutual Fund has an expected return of 20.0 % and a volatility of 20.0 %. Optima claims th...