Question: Suppose the returns for stock ABC is 2%, 2%, 5%, 4%, and 6%, and the returns for stock XYZ is 7%, 7%, 5%, 9%, and

  1. Suppose the returns for stock ABC is 2%, 2%, 5%, 4%, and 6%, and the returns for stock XYZ is 7%, 7%, 5%, 9%, and -9%. What is the Sharpe ratio of a portfolio with 40% and 60% weights on ABC and XYZ respectively?
  1. 0.67
  2. 0.77
  3. 0.87
  4. 0.97

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