Asset X and Y have a correlation coefficient of 0. Asset X has an expected total...
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Asset X and Y have a correlation coefficient of 0. Asset X has an expected total return of 17% and a Sharpe ratio of 0.4. Asset Y has an expected total return of 22% and a Sharpe ratio of 0.5 Assuming a risk-free rate of 3%, if X and Y are combined in a portfolio with a 50% weighting in each, what would be the portfolio's Sharpe ratio? (3 marks) Asset X and Y have a correlation coefficient of 0. Asset X has an expected total return of 17% and a Sharpe ratio of 0.4. Asset Y has an expected total return of 22% and a Sharpe ratio of 0.5 Assuming a risk-free rate of 3%, if X and Y are combined in a portfolio with a 50% weighting in each, what would be the portfolio's Sharpe ratio? (3 marks)
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