Business, 18.03.2021 01:50 Kassiekass

The risk-free asset has a return of 2.00%. The risky asset has a return of 29.96% and has a variance of 2.82%. Mark is currently investing 84.33% in the risky asset and the rest in the risk-free asset. If Mark increases his investment in the risky assets by 60.10% (and, consequently, reduces its investment in the risk-free in the same proportion), what will happen to his Sharpe Ratio. (Put 1 if it increases, 0 if it stays the same, -1 if it decreases).

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The risk-free asset has a return of 2.00%. The risky asset has a return of 29.96% and has a variance...

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