Stock A	Stock B	Risk-free Rate
Average	11.00%	9.00%	6%
Variance	12.00%	10.00%
Sigma	0.3464	0.3162
Cov(rA,rB)	0.0400
Correlation(rA, rB)	3.3333
Part A. Calculate portfolio's Sharpe ratio and other statistics
Percentage in A	50.00%
Percentage in B	50.00%
Expected portfolio return, E(rp)	10.00%
Portfolio standard deviation, sp	7.50%
Sharpe Ratio	0.5333
Part B. Identify the market portfolio, the intercept and the slope of the capital market line (CML) equation
Percentage of A in the market portfolio	0.00%
Percentage of B in the market portfolio
The market portfolio expected return
The market portfolio standard deviation
CML intercept
CML slope
Part C. If you invest 20% of your investment at the risk-free rate and the rest fund in the market portfolio, what are your portfolio expected return and standard deviation?
Percentage of investment in the risk-free asset
Percentage of investment in the market portfolio
Expected portfolio return, E(rp)
Portfolio standard deviation, sp
Part D. Suppose you are able to borrow $1000 at the risk-free rate, and invest both borrowed capital and $5000 of your own capital into the market portfolio
Percentage of investment in the risk-free asset
Percentage of investment in the market portfolio
Expected portfolio return, E(rp)
Portfolio standard deviation, sp