Rp - RF The Sharpe ratio is a measure that allows one to compare two portfolios. It is given by Op ratio is often considered a marker of a better portfolio. where Rp is the expected return on the portfolio, RF is the risk-free rate and op is the standard deviation of the portfolio returns. A larger Sharpe For example, if two portfolios have the same return then the one with the smaller standard deviation will have a larger Sharpe ratio. Alternatively, if two portfolios have the same standard deviation then the one with the larger return will have a larger Sharpe ratio. You are an investor and own a portfolio consisting of 2 stocks. The percentage of the portfolio that is invested in the first stock is 84% and the percentage of the portfolio that is invested in the second stock is 16%. The risk-free rate is 1.80%, the expected return for the first stock is 8.13% and the expected return for the second stock is 5.60%. The standard deviation of the first stock is 12.44% and the standard deviation of the second stock is 19.57%. The correlation between the stocks is 16.00%. What is the expected return on the portfolio? Write as a percentage to two decimal places %. What is the variance of the portfolio? Write the answer as a number to four decimal places What is the standard deviation of the portfolio. Write the answer as a percentage to two decimal places % What is the Sharpe Ratio for this portfolio? Write as a percentage to two decimal places %