Question: Consider two risky assets with respective expected returns ~1=4.6% and ~2=9.5%, volatilities 1=7.2% and 2=16.4% and correlation =48%. We assume a zero risk-free rate. What

Consider two risky assets with respective expected returns ~1=4.6% and ~2=9.5%,

Consider two risky assets with respective expected returns ~1=4.6% and ~2=9.5%, volatilities 1=7.2% and 2=16.4% and correlation =48%. We assume a zero risk-free rate. What is the maximum Sharpe ratio that can be achieved by combining them? 0.38 0.44 0.49 0.59

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