Find the optimal risky portfolio then calculate the


Find the optimal risky portfolio, then calculate the expected return, standard deviation and sharp ratio. Compare the sharpe ratio of the portfolio to the sharpe ratios of the stock fund and the bond fund. THE FOLLOWING IS GIVEN: Stock fund: expected return= 15; Standard deviation=50 Bond fund: expected return= 10; Standard deviation=20 T-Bills: Expected return= 5; Standard deviation= 0 *the correlation coefficient between stock fund and bond fund is a -0.2.

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Finance Basics: Find the optimal risky portfolio then calculate the
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