Suppose you group all the stocks in the world into mutually exciusive portfolios (each stock is in only one portfolio growth stocks and value stock. Suppose the two portfolies have a cual size (in terms of total value) a correlation of 0.5, and the following characteristics: The risk free-rate is 4% What is the expected return and volatility of the market portfolio (which is a 50-50 combination of the two portfolios? b. Calculate the Sharpe ratios of the value stock, growth stock, and market portfolio c. Does the CAPM hold in this economy? (Hint is the market portfolio efficient?) GH a. What is the expected retum and volatility of the market portfolio (which is a 60-50 combination of the two portfolio The expected retum of the market portfolio is % (Round to one decimal place) - X Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Expected Return Volatility Value Stocks 11% 50% Growth Stocks 17% 30% Print Done View an example Help me solve this Get more help Clear all Check