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The return statistics for two stocks and T-bills are given below: A B C D 1 Stock A Stock B T-bills 2 Expected return 0.094

The return statistics for two stocks and T-bills are given below:

	A	B	C	D
1		Stock A	Stock B	T-bills
2	Expected return	0.094	0.079	0.02
3	Variance	0.1156	0.0729
4	Standard deviation	0.34	0.27
5	Covariance	0.02754

Part 1

What is the Sharpe ratio of a portfolio with 40% invested in stock A and the rest in stock B?

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