As the manager of Radboud Investments, LLC you are thinking of increasing your private investments. You already have a diversified portfolio containing a lot of stocks. Furthermore, the expected rate...


As the manager of Radboud Investments, LLC you are thinking of increasing your private investments. You already have a diversified portfolio containing a lot of stocks. Furthermore, the expected rate of return on the market portfolio is 8% and the risk free rate is 4%



































StocksAlpha %BetaStandard deviation
GOOGLE0.51.130%
LUFTHANSA0.21.835%
KLM0.12.040%


Select the correct answer


(a)LUFTHANSA because its Sharpe Ratio is the largest
(b)Google because its Treynor ratio is the largest
(c)LUFTHANSA because its Treynor Ratio is the largest
(d)Google because its Sharpe ratio is the largest
(e)KLM because its Treynor Ratio is the largest



Jun 05, 2022
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