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QUESTION 12 Stock A has an expected return of 8% with a standard deviation of 20% and Stock B has an expected return of 12%
QUESTION 12 Stock A has an expected return of 8% with a standard deviation of 20% and Stock B has an expected return of 12% with a standard deviation of 40%. Correlation coefficient between the two stocks is 0.8 and the risk-free rate is 2%. Consider a portfolio investing 30% in Stock A and 70% in stock B. What is the Sharpe ratio of the portfolio
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