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Risk Adjusted Return

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Manager A shows a return of 20% with a standard deviation of 17%. Manager B shows a return of 13% with a standard deviation of 6%. If the risk free rate is 5% which manager has the better risk adjusted return?

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Solution Summary

The solution provides the calculations to determine the performance of fund managers in the given case.

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Sharpe Ratio for Manager A=(Portfolio Return-Risk Free Return)/Standard ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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