Question: Consider the following data on returns (R), standard deviation (C), and correlations (1) for stocks (asset 1), bonds (asset 2) and real estate (asset 3):

Consider the following data on returns (R), standard deviation (C), and

Consider the following data on returns (R), standard deviation (C), and correlations (1) for stocks (asset 1), bonds (asset 2) and real estate (asset 3): R1 - 10%, 01 - 4%, R2 - 20%, 02 - 10%, R3 = 1396, 03 = 39,112 - 0.8, 113 -0.0, r23 -0.5. What is the reward to risk ratio (R/o ratio) of the portfolio that is invested 60% in stocks, 40% in bonds, and 0% in real estate? 2.963 5.945 2.298 2.363

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