The market consists of a risk-free asset with return of 5%, and two risky assets:...
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Finance
The market consists of a risk-free asset with return of 5%, and two risky assets: stock fund with an expected return of 20% and standard deviation of 38%, and a bond fund with the expected return of 11% and standard deviation of 18%. The correlation between stock and bond funds is -20%. What is the maximum Sharpe ratio that can be obtained in this market
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