The expected return of Security A is 10% with a standard deviation of 20%. The expected return

Question:

The expected return of Security A is 10% with a standard deviation of 20%. The expected return of Security B is 15% with a standard deviation of 30%. Securities A and B have a correlation of 0.3. The market return is 12% with a standard deviation of 18% and the risk free rate is 3.5%. What is the Sharpe ratio of a portfolio if 40% of the portfolio is in Security A and the remainder in Security B?

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...