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(b) Consider a portfolio that invests equally in the two stocks (IBM and Google), what is the Sharpe ratio of this equal-weighted portfolio? (c) What

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(b) Consider a portfolio that invests equally in the two stocks (IBM and Google), what is the Sharpe ratio of this equal-weighted portfolio? (c) What is the standard deviation of the optimal risky portfolio (a.k.a. tangency portfolio) constructed from the two stocks? 15. (12 points) Consider the following data for an economy where a one-factor APT holds. All portfolios are well diversified. Portfolio E(r) Beta A 10% 1.0 F 8% 0.6 a) What is the factor risk premium in this economy? (b) What is the risk-free rate in this economy

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