Calculate Sharpe Ratio for Efficient Portfolio - Financial Investment Guide

The Sharpe ratio is calculated as the excess return of the portfolio (in this case, the efficient portfolio) divided by its volatility.\n\nExcess return = expected return - risk-free rate\nVolatility = standard deviation\n\nExcess return of the efficient portfolio = 16.4% - 3.6% = 12.8%\nVolatility of the efficient portfolio = 13.1%\n\nSharpe ratio = (excess return of the efficient portfolio) / (volatility of the efficient portfolio)\nSharpe ratio = 12.8% / 13.1%\nSharpe ratio ≈ 0.977\n\nTherefore, the Sharpe ratio for the efficient portfolio is approximately 0.977.