John is interested in investing in the market stock portfolio and in the risk- free asset. The expected rate of return is 18% and standard deviation is 28% for the market portfolio. He faces a free T-bill rate of 8%

1. John is interested in investing in the market stock portfolio and in the risk-free asset. The expec returnis 18% and STD is 28% for the market portfolio. He faces a risk free T-bill rate of 8%. a. What is the reward-to-volatility-ratio (Sharpe ratio)? b. If John's risk aversion is 3.5, how much he should invest in the market portfolio optimally? c. What is the rate of return and STD of his optimum portfolio? 1. John is interested in investing in the market stock portfolio and in the risk-free asset. The expec returnis 18% and STD is 28% for the market portfolio. He faces a risk free T-bill rate of 8%. a. What is the reward-to-volatility-ratio (Sharpe ratio)? b. If John's risk aversion is 3.5, how much he should invest in the market portfolio optimally? c. What is the rate of return and STD of his optimum portfolio