Essays Tagged: "Sharpe ratio"

FIN 402 Modern Portfolio Theories.

William Sharpe, Harry Markowitz and Merton Miller are the three economists who shared a Nobel prize in 1990 ... onomics.Harry Markowitz was awarded the Prize for developing the theory of portfoliochoice; William Sharpe, for his contributions to the theory of price formation for financial assets, the so-called, ... tfolio considers expected return a desirable thing and variance of the return and undesirable thing.Sharpe Ratio.The Sharpe Ratio, named after Nobel Laureate William Sharpe, is the measure of a portfo ...

(5 pages) 295 0 2.5 Oct/2005

Subjects: Businesss Research Papers > Markets & Exchanges

Risk and Return Tradeoff Memo

es to construct a portfolio. This memo will detail my decisions made in the simulation, discuss the Sharpe ratio and how it relates to investment decisions, and lastly, provide recommendations for cha ... nly between the four stocks which resulted in 20.45% portfolio risk, 12.74% portfolio return, and a Sharpe ratio of 38.46%. This was a good decision considering management would not approve of any ris ...

(4 pages) 158 0 4.0 Oct/2008

Subjects: Social Science Essays > Economics > Rates & Indexes

Risk and Return Trade off Memo

nds resulted in a portfolio risk rate of 20.45%, an expected portfolio return rate of 12.74%, and a Sharpe ratio of 38.46%. The Sharpe ratio is a formula that tells the portfolio manager or investor w ... stment if those higher returns do not come with too much additional risk. The greater a portfolio's Sharpe ratio, the better its risk-adjusted performance has been (Sharpe Ratio, n.d.). Therefore, our ...

(4 pages) 27 0 4.0 Feb/2010

Subjects: Businesss Research Papers > Markets & Exchanges

Constructing and Managing a Portfolio Simulation - Memo

y and investment performance (UNIVERSITY OF PHOENIX, 2010). In addition, this memo will discuss the Sharpe ratio and how it relates to investment decisions.As the Treasury Analyst for Casa Bonita, my ... s manner offered an expected portfolio return of 11.41%, an expected portfolio risk of 17.16% and a Sharpe ratio of 38.08%.I chose to invest in three stocks with low risk and average returns, accordin ...

(4 pages) 43 0 0.0 May/2010

Subjects: Businesss Research Papers