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Suppose Fund Z has Sharpe ratio of 1.5. Currently, all your investments are in a risk-free bond that has 1% return. You are willing to
Suppose Fund Z has Sharpe ratio of 1.5. Currently, all your investments are in a risk-free bond that has 1% return. You are willing to increase the risk of your portfolio to 2% by investing in Fund Z. If you do that, how much return should you be able to earn? Enter your answer in percentage points but without % sign.
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