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Suppose that there are risky assets and a risk-free asset, and that an investors portfolio lies on the capital allocation line. The investor has a

Suppose that there are risky assets and a risk-free asset, and that an investors portfolio lies on the capital allocation line. The investor has a portfolio weight of zero on the risk-free asset and the risk-free rate is 1%. If the slope of the capital allocation line is 0.5, and the tangency portfolio has a volatility of 15%, what will the Sharpe ratio of the investors portfolio be?

a. 1 b. 0.5 c. 1.5 d. Cannot say given the information in the question.

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