Midterm

Clarification on Problem Set 4, Question 7

Re: Clarification on Problem Set 4, Question 7

by Diogo Manuel Gonçalves Luís -
Number of replies: 0
Hi Lucas,

You are correct in the sense that the efficiency is not consistent with the Sharpe Ratios you get. This is an imperfection of the exercise, as its intended use is for you to calculate the standard deviation and return of the portfolio (not sharpe ratio).

Best,

Diogo