Question 1. The risk-free rate is 2%. If a portfolio has a standard deviation of 6%, a beta of 1.8 and an expected return of 10%, what is the Sharpe ratio for the portfolio?

A. 8.00% B. 1.3333 C. 1.8

D. 1.6666

Question 2. You invest 1,000 euros into Telefonica, which gives 8% expected return and invest 500 euros in the risk-free asset, which gives 2% return. What is the expected return of your portfolio?

A. 8% B. 2% C. 6% D. 5%