Jessica has $10,000. She can invest the money in (1) a corporate bond, (2) a stock, and (3) the risk-free T-bill. The table below provides these assets expected returns and standard deviations:

Please Show work with formulas included and also please show it digitally and not written out. I can barely make out the handwriting on some of these answers. Thank you.

Bond (D) Stock (E) T-Bill Expected Return 7% 14% 2% Standard Deviation 15% 25% 0 The coefficient of correlation (PDE) between the corporate bond and the stock is 20%. The investor has a risk aversion coefficient of A=4. (a) Which risky asset (bond or stock) has a higher Sharpe ratio? (5 points) (b) What are the weights of the bond and the stock in the optimal risky portfolio of two risky assets? (10%) Bond (D) Stock (E) T-Bill Expected Return 7% 14% 2% Standard Deviation 15% 25% 0 The coefficient of correlation (PDE) between the corporate bond and the stock is 20%. The investor has a risk aversion coefficient of A=4. (a) Which risky asset (bond or stock) has a higher Sharpe ratio? (5 points) (b) What are the weights of the bond and the stock in the optimal risky portfolio of two risky assets? (10%)