The stock and bond portfolios have a correlation of 55 and


You decide to put half of your money in a stock portfolio that has an expected return of 14% and a standard deviation of 24%. You put the rest of your money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 12%. The stock and bond portfolios have a correlation of .55 and TB or risk free rate is 2%. What is the SR of the resulting portfolio?

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Financial Management: The stock and bond portfolios have a correlation of 55 and
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