Question: Help! Please show work!! Answer is B, but I'm struggling to come up with the work!! Thank you!! Q14 (4 pts) The optimal risky portfolio

Help! Please show work!! Answer is B, but I'm struggling to come

Help! Please show work!! Answer is B, but I'm struggling to come up with the work!! Thank you!!

Q14 (4 pts) The optimal risky portfolio has an expected return of 8% and a standard deviation of 10%. You are a risk-averse investor and want to invest 50% of your total asset in the optimal risky portfolio and the rest in the risk-free asset. This will yield a 6% expected return. What is the Sharpe Ratio of your portfolio? A. 0.2 B. 0.4 C. 0.6 D. 0.8 E. 1.2

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