Question: You are a fund manager looking to create an optimal risky portfolio using the funds in the table ( 5 ) . Correlation between the

You are a fund manager looking to create an optimal risky portfolio using the funds in
the table (5). Correlation between the fund returns is 0.15, while you can earn 5.5%
investing in T-bills.
a) What is the weight of the stock fund in the optimal risky portfolio?
b) What is the weight of the bond fund in the optimal risky portfolio?
c) What is the Sharpe Ratio of the optimal risky portfolio?
You are a fund manager looking to create an optimal risky

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