You've done some security analysis and generated the following data for two stocks and Treasury bills Security Stock A Stock B T bills Expected return ( ) 12 8 2 Standard deviation 0 2 0 15 0 Correlation with stock A 1 0 5 0 What is the weight of stock A in the optimal risky portfolio What is the Sharpe ratio of the optimal risky portfolio (excel or transferable to excel please)

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Question: You've done some security analysis and generated the following data for two stocks and Treasury bills: Security Stock A Stock B T-bills Expected return (%)

You've done some security analysis and generated the following data for two stocks and Treasury bills:

Security	Stock A	Stock B	T-bills
Expected return (%)	12	8	2
Standard deviation	0.2	0.15	0
Correlation with stock A	1	0.5	0

What is the weight of stock A in the optimal risky portfolio? What is the Sharpe ratio of the optimal risky portfolio? (excel or transferable to excel please)

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