Question: Given the information in the table below, find Sharpe ratios (SHP) of stocks A and B, and portfolio C. Stock A Stock B Return above

Given the information in the table below, find Sharpe ratios (SHP) of stocks A and B, and portfolio C.

Stock A Stock B

Return above risk free rate 12% 10%

Standard deviation Sharp ratio

10% 10%

Portfolio C (equally weighted portfolio of stocks A and B, assuming 0.5 correlation)

11%

8.7%

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