Jessica has $10,000. She can invest the money in (1) a corporate bond, (2) a stock, and (3) the risk-free Tbill. The table below provides these assets expected returns and standard deviations: Bond (D) Stock (E) T-Bill Expected Return 7% 14% 2% Standard Deviation 15% 25% 0 The coefficient of correlation (DE) between the corporate bond and the stock is 20%. Jessica has a risk aversion A=4.

Does the optimal risky portfolio have a higher or lower Sharpe ratio than the stock and the bond and why?