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10. (10 pt) A portfolio consists of stocks X and Y. proportion invested on stock X is 0.7 and on stock Y is 0.3. a.

10. (10 pt) A portfolio consists of stocks X and Y. proportion invested on stock X is 0.7 and on stock Y is 0.3. a. Stock X's expected return is 0.12 with volatility 0.20 b. Stock Y's expected return is 0.10 with volatility 0.15 c. The stocks are correlated and the correlation coefficients is -0.3 d. The annual effective risk free interest rate is 0.05 Calculate the Sharpe ratio of the portfolio

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