FN4320 CHAPTER 6 10/5/2020 A universe of securities includes a risky stock (X), a stock index fund (M), and Treasury Bills. The data for the universe are: Expected return Standard deviation Stocks (X) 15% 50% Stock Index Fund (M) 10% 20% T-bills 5% 0% Optimal Risky Portfolio 11.28% 17.59% W, -26% W = 74% A) Calculate the Sharpe ratio of the optimal risky portfolio, and compare it with the Sharpe ratio of X and M. B) Find the slope of the CAL generated by T-bills and portfolio O. C) Suppose an investor places 2/9 (i.e. 22.22%) of the complete portfolio in the risky portfolio O and the remainder in T-bills. Calculate the composition of the complete portfolio, its expected return, and Sharpe ratio