So I am going through the Practice Problems in the CFAI now and in the process, I had a question on Optimal pf when calculating Excess Return over MTCR.

One of the item set’s answer mentioned that since the pf is an optimal portfolio, Excess Return over MTCR’s formula is equivalent to a Sharpe Ratio. (Essentially replacing MTCR with std dev of pf)

Exhibits nor the item set mentions anything about pf being optimal. Any thoughts?

Hi, S2000magician. This was from the CFAI question book. (Review Category Asset Allocation and Related Decisions in Portfolio Management (1), Tina Swan Case Scenario, Question 17)