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Given the following information, answer the following questions: Expected Return on the stock market: 15%; Standard deviation of the stock market return 40% Expected Return

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Given the following information, answer the following questions: Expected Return on the stock market: 15%; Standard deviation of the stock market return 40% Expected Return on bond market: 5%; Standard deviation of the stock market return 10% Correlation between the Stock Market and the Bond Market - 0.2 Return on Treasury Bills: 2% Inflation: 3% Find the following: 1) Real expected return of the Stock Market 2) Real expected return of the Bond Market 3) Real return from Treasury Bills 4) Expected Risk Premium of the Stock Market 5) Expected Risk Premium of the Bond Market 6) Risk Premium of Treasury Bills 7) Sharpe Ratio of the Stock Market

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