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The Usefulness of the Sharpe Ratio

Q1: Using basic terminology, explain why the Sharpe Ratio is a useful computation (i.e., from the perspective of E(r) and ). Q2: A colleague assumes that the relationship between the number of stocks in a portfolio and risk reduction is perfectly linear- state your...

Fianance

The basic present value equation has four parts. What are they? Describe how the payback period is calculated, and describe the information this measure provides about the sequence of cash flows. What is the payback criterion decision rule?
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