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A portfolio consists of the following two funds. Fund A Fund B Expected return 16% 9% Standard deviation 26% 11% Portfolio market value $24,000 $16,000

A portfolio consists of the following two funds.

Fund A Fund B

Expected return 16% 9%

Standard deviation 26% 11%

Portfolio market value $24,000 $16,000

Correlation (RA,RB) .28

Risk-free rate 4%

What is the Sharpe ratio of the portfolio?

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