Q4 (10 marks) Show All Workings Simone manages the HSU's endowment fund and is considering adding EAF Capital Equity Long/Short hedge fund to its portfolio. HSU'S current portfolio has a Sharpe ratio of 0.65 and the EAF Capital Equity Long/Short hedge fund has a Sharpe Ratio of 0.45 with a correlation of 0.40 to HSU's current portfolio. Should Simone add the EAF Capital hedge fund to HSU's portfolio? (Note Sharpe = (E(Rm) Rf) /om)