Question 6 Assuming a risk-free rate of 4.5%, calculate the optimal weight in shares and bonds that results in an optimal Sharpe Ratio. A) 122.32% in Bonds; -22.32% in Shares B) 103.78% in Bonds; -3.78% in Shares C) 123.55% in Bonds; -23.55% in Shares D) 133.43% in Bonds; -33.43% in Shares E) 126.02% in Bonds; -26.02% in Shares Correct answer is C. You have been provided with the below information related to potential returns on bonds and shares under different economic conditions. Scenario Return.on.Bonds Boom Positive Growth Normal Growth Negative Growth Recession Probability 6% 17% 43% 20% 10% Return.on.Shares 44% 17% 4% 2% -8% -17% 9% 6% 4% 1% 0% -2% Crash 4% Question 6 Assuming a risk-free rate of 4.5%, calculate the optimal weight in shares and bonds that results in an optimal Sharpe Ratio. A) 122.32% in Bonds; -22.32% in Shares B) 103.78% in Bonds; -3.78% in Shares C) 123.55% in Bonds; -23.55% in Shares D) 133.43% in Bonds; -33.43% in Shares E) 126.02% in Bonds; -26.02% in Shares Correct answer is C. You have been provided with the below information related to potential returns on bonds and shares under different economic conditions. Scenario Return.on.Bonds Boom Positive Growth Normal Growth Negative Growth Recession Probability 6% 17% 43% 20% 10% Return.on.Shares 44% 17% 4% 2% -8% -17% 9% 6% 4% 1% 0% -2% Crash 4%