1. Suppose portfolio Ps expected return in 12%, its volatility (standard deviation) is 20%, and the risk-free rate is 5%. Suppose further that a particular mix of asset i and P yields a portfolio P with an expected return of 18% and a volatility of 30%.
   1. Compute for the Sharpe ratio of P.
   2. Compute for the Sharpe ratio of P.
   3. Is adding asset i beneficial? Explain.