Basic Questions 6. Two portfolios lie on the CAL (capital allocation line). The first portfolio's expected return is 10% and its Sharpe ratio is 0.43. The second portfolio's expected return is 5%. What is the Sharpe ratio of the second portfolio? (Hint: 10% and 5% are irrelevant information. The first sentence is very important. Are Sharpe ratios of the assets on the same CAL identical or different? If you still don't get it, read the lecture to find the answer.) 1) 0.215 2) 0.315 3) 0.430 4) 0.860 5) 0.900