You have a portfolio made up of two stocks: A and B. A has an...
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You have a portfolio made up of two stocks: A and B. A has an expected return of 9%, B has an expected return of 13%. A has a standard deviation of 17%, B has a standard deviation of 16%. The correlation between A and B is 0.2. If your portfolio is made up of 28% in A, what is the Sharpe ratio of your portfolio? Assume that T-Bills are paying 4%. Round to the nearest four decimal places. Be sure not to round any of your preliminary calculations, and make sure you are consistent in your preliminary calculations in using percent form or decimal form
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