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# You are considering investing in three different assets. The first is a stock, the second is a long-term government bond and the third is

## You are considering investing in three different assets. The first is a stock, the second is a long-term government bond and the third is a T-bill money market fund that yields a sure rate of 5%. The probability distributions of both the risky assets: Stock (S) Bond (B) Expected Return 15% Standard Deviation 32% 9 23 The correlation between the stock and bond returns is 0.15. What is the Sharpe ratio of the minimum variance portfolio? 0.72 0.23 0.27 00.32

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To find the Sharpe ratio of the minimum variance portfolio we first need to determine the weights of the stock and the bond in the minimum variance po...### Get Instant Access to Expert-Tailored Solutions

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### Step: 3

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