q.47

Given the risk and return of two risky assets, the risk-free rate, the correlation coefficient between the two risk assets, as well as the optimal portfolio weight of one of the risky assets, calculate the Sharpe Ratio of a portfolio that invest 50% in the risk-free rate Rf and 50% in the optimal risky portfolio: Input Data ERA) E(Rs) 0 20 AL Correlarion Coefficient PAB 0.30 ER Assume the optimal Risky Portfolio (O) has the following weights W; -.80 WA- 0.41 None of the answers is correct 0.32 0.35 0.39