Mean excess Return = 7.4% Standard Deviation of Annual Returns = 15.7% Portfolio Beta = 1.2 The Coefficient of Variation and Sharpe Measure, respectively, for the portfolio are closest to: Coefficient of Variation Sharpe Measure A - 0.82 0.39 B - 0.82 0.47 C - 1.32 1.23 D - 1.23 0.47 I know the answer, I just can’t figure out how one would find CV with the given info.

Sharpe Measure is 0.47. I really don’t seem to know how to get the CV from that data?! If I was to guess the answer… I would say B.

sd/mean…no?

I think Sharpe is 0.47 (7.4/15.7), it must be either B or D. Since it has a beta of 1.2, it varies more than the market so it has to be a value>1, that’s D.

I guess I should put up the calculations it shows in the answer. For CV it did 15.7/12.8. For Sharpe it’s 7.4/15.7. Answer is D, but I don’t understand how they got 12.8.

Are you sure there’s not another component? The 7.4% is the excess return used in the Sharpe ratio. Multiplying, dividing, etc. these 3 variables, I can’t come up with a way to get 12.8…

Maybe it’s wrong. If it’s a Schweser question you can email them with the doubt and they are very good at replying quickly with an explanation. I can’t seems to find a way to get 12.8 either.

Yea, this is all of the information I had. It’s from a pdf that someone sent me. It’s possible they left something out, but these are all supposed to be from CFAI.

I think I’m just going to go with the question missing critical information. I just thought there was some formula i had missed somewhere. Glad that’s not the case. Thanks everyone. Sorry if this confused anybody.

I think unless you know what’s the Rf, you cannot get the mean to be 12.8, that’s like a RF of 5.4%. Maybe something is missing.

Its definitely wrong. CV = sd/mean should be close to 2. whatever, and sharpe is definitely .47 as you guys have confirmed.

Is rf = 4% given somewhere> CP

I saw a similar question on CFAI sample exam There should be one more line of information

hhahah thank god im not the only one