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There are two risky assets: a stock and a bond. The stock has an expected return of 18% and a standard deviation of 0.3. The

There are two risky assets: a stock and a bond. The stock has an expected return of 18% and a standard deviation of 0.3. The bond has an expected return of 8% and a standard deviation of 0.2. The correlation between the two assets is 0.4. The risk- free rate is 4%. You invest 60% of your wealth into stock and 40% into bond. What is your portfolio expected return? What is the standard deviation of your portfolio? What is the risk premium of your portfolio? What is the Sharpe ratio of your portfolio?

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