Question: Using the data from problem 8 , the expected return of stock A is 1 7 % and the expected return of stock B is

Using the data from problem 8, the expected return of stock A is 17% and the expected return of stock B is 8%. If the riskfree rate is 2.25%, what is the Sharpe ratio of the tangency portfolio formed by creating the optimal risky portfolio combining stocks A and B? Please note that the weights of the optimal risky portfolio will no longer be the same as the weights for the minimum variance portfolio. Note that the Sharpe Ratio is usually expressed as a decimal.

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