Question 5 (16 marks) You are given the following information regarding the Russian markets which are currently subject to economic sanctions. Russian Shares Russian Bonds Volatility 17% 5% Correlation with 0.7 0.3 global market Degree of 0.3 0.3 integration 0.2 0.1 Segmented market Sharpe ratio The risk-free rate is 1% and the global Sharpe ratio is 0.15. a. Calculate the expected returns of the Russian shares and bonds. (9 marks) b. Explain briefly how removal of economic sanctions such as prohibiting U.S. institutional investors from investing in Russian stock and bond markets would affect the expected returns in part a. (7 marks)