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Suppose a risk-free asset has a 5 percent return and a second asset has an expected return of 13 percent with a standard deviation of
Suppose a risk-free asset has a 5 percent return and a second asset has an expected return of 13 percent with a standard deviation of 23 percent. A portfolio consisting 10 percent of the risk-free asset and 90 percent of the second asset. What is the Sharpe ratio of this portfolio?
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