What is the Sharpe ratio of a portfolio with 90% invested in stock A and the rest in stock B?

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The return statistics for two stocks and T-bills are given below: A 2 Expected return 3 Variance 4 Standard deviation 5 Covariance B Stock A C D Stock B T-bills 0.074 0.02 0.094 0.1296 0.0729 0.36 0.27 0.02916 The return statistics for two stocks and T-bills are given below: A 2 Expected return 3 Variance 4 Standard deviation 5 Covariance B Stock A C D Stock B T-bills 0.074 0.02 0.094 0.1296 0.0729 0.36 0.27 0.02916

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SOLUTION To calculate the Sharpe ratio of the portfolio we need to first calculate the expected return and standard deviation of the portfolio The exp... View the full answer