Suppose that the risk-free rate is rrf and a certain stock expected return µ, volatility σ and Sharpe ratio S. Consider a 50% - 50% portfolio of the stock and the risk-free asset. Two of the following statements are correct and one is incorrect:
The expected return of the portfolio is 0.50 x rrf + 0.50 x µ.
The volatility of the portfolio is 0.50 x σ.
The Sharpe ratio of the portfolio is 0.50 x S.
Which of these two are correct?