6a-6c

6. The expected return of stock S is 0.07, the expected return of stock B is 0.08, and the risk-free rate is 0.02. The var-cov matrix of S and B: 1 S B I S 1 0.2 B 0.06 0.3 6a. Calculate the Sharpe ratio of MVP. 18 points) 6b. Calculate the Sharpe ratio of optimal risky portfolio 0. [10 points) 6c. An investor invested $8,500 of the complete portfolio in the optimal risky portfolio O and $1,500 in T-bills. Calculate the Sharpe ratio of this complete portfolio. 18 points)