10. Suppose that you wish to invest in two stocks: Stock 1 and Stock 2. If stock 1's return ri follows a normal distribution N(10%, (20%)2) and stock 2's return r2 follows a normal distribution N(8%, (15%)2). If the correlation coefficient between the two returns is .6. You form a portfolio (with return Ip) by putting 60% of your money into stock 1 while the rest on stock 2. If the risk-free rate If is 4%, then your portfolio's Sharpe Ratio ([E(Ip ) - If]/Op , where op is the standard deviation of your portfolio) is a. .08 b. .19 c. .23 d. .32 e. None of the above