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Stocks A and B have the following historical returns: Year Stock A's Returns Stock B's Returns. 2015 (24.25%) 5.50% 2016 18.50 26.73 2017 38.67 48.25

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Stocks A and B have the following historical returns: Year Stock A's Returns Stock B's Returns. 2015 (24.25%) 5.50% 2016 18.50 26.73 2017 38.67 48.25 2018 14.33 (4.50) 2019 39.13 43.86 Assume the risk-free rate during this time was 3.5%. What are the Sharpe ratios for Stocks A and B and the portfolio over this time period using their average returns? Answers: a) Sharpe ratio for Stock A 0.5058 b) Sharpe ratio for Stock B - 0.9879 c) Sharpe ratio for Portfolio AB- 0.9188

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