Sharpe (Ratio) Thinking about the Investment Opportunity Set and CAPM Relationship

<table class="table-group" width="800px"><tr class="fig-image" id="a"><td><img alt="781760.fig.003a" src="https://static.hindawi.com/articles/ecri/volume-2011/781760/figures/781760.fig.003a.jpg"/></td></tr><tr class="fig-caption"><td align="center"><table><tr><td><b>(a) </b>Classical</td></tr></table></td></tr><tr class="fig-image" id="b"><td><img alt="781760.fig.003b" src="https://static.hindawi.com/articles/ecri/volume-2011/781760/figures/781760.fig.003b.jpg"/></td></tr><tr class="fig-caption"><td align="center"><table><tr><td><b>(b) </b>Alternative</td></tr></table></td></tr></table>

<table>Classical and alternative illustrations of the CAPM relationship.</table>

Economics Research International

fig3

Figure 3

Figure 3: Sharpe (Ratio) Thinking about the Investment Opportunity Set and CAPM Relationship 