(Ref. Unit 5 Slides 7,1415 ) During the past 5 -year, the monthly average return and standard deviation of Netflix (NFLX) stock were 3.5% and 10%, respectively. For the same period, the monthly average return and standard deviation of Verizon (VZ) were 0.6% and 4.6%, respectively. The correlation between NFLX and VZ was 0.1. Assume that the monthly riskfree rate is 0.1%. Note: You can use the Excel template for 2-asset portfolio optimization posted on Canvas. A. (1 point) What is the Sharpe ratio for NFLX? What is the Sharpe ratio for VZ ? - Show your calculation steps briefly. and clearly. B. (1 point) Find the minimum-variance portfolio (MVP), i.e., the weight of NFLX and VZ in the MVP. - You do not need to show your calculation steps for this subquestion. C. (1 point) Find the optimal risky portfolio P, i.e., the weight of NFLX and VZ in P. - You do not need to show your calculation steps for this subquestion. D. (1 point) Calculate the Sharpe ratio for the optimal risky portfolio P. Verify that P offers a higher Sharpe ratio than NFLX and VZ. - Show your calculation steps briefly. and clearly. A. (Hint) Compute the Sharpe ratio for NFLX and VZ. - Sharpe ratio =(E[rP]rf)/Std(P) - NFLX Sharpe ratio =(0.0350.001)/0.1= ? - VZ Sharpe ratio =(0.0060.001)/0.046= ? B. (Answer) Use the Excel template to determine the minimumvariance portfolio (MVP). - Weight of NFLX =19.76% - Weight of VZ =80.24% C. (Hint) Use the Excel template to determine the optimal risky portfolio P. - Weight of NFLX = ? - Weight of VZ= ? D. (Hint) First, calculate the Sharpe ratio for the optimal risky portfolio P. If you have found the correct optimal risky portfolio P, you should be able to verify that P has a higher Sharpe ratio than both NFLX and VZ