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The market consists of a risk-free asset with return of 4%, and two risky assets: stock fund with an expected return of 22% and standard
The market consists of a risk-free asset with return of 4%, and two risky assets: stock fund with an expected return of 22% and standard deviation of 40%, and a bond fund with the expected return of 13% and standard deviation of 17%. The correlation between stock and bond funds is 20%. What is the maximum Sharpe ratio that can be obtained in this market?
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