. An investor can design a risky portfolio based on two stocks, A and B. Stock A has an

expected return of 18% and a standard deviation of return of 20%. Stock B has an expected

return of 14% and a standard deviation of return of 5%. The correlation coefficient between the

returns of A and B is 0.50. The risk free rate of return is 10%.

What is the Sharpe ratio of the optimal risky portfolio