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A financial institution has outstanding loans to two industries: Industry 1 and Industry 2. What is the Sharpe Ratio for this portfolio if the risk

A financial institution has outstanding loans to two industries: Industry 1 and Industry 2. What is the Sharpe Ratio for this portfolio if the risk free rate is 1.5%?

Use the table to answer the question.

Loans Portfolio Weight Expected Return Variance Standard Deviation Correlation Coefficient Firm 1 0.30 9.5 81 9 -0.22 Firm 2 0.70 5.25 25 5

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