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You have an optimal portfolio of stocks, risky bonds and the riskfree asset. Holding everything else fixed, if the correlation between stock and bond goes
You have an optimal portfolio of stocks, risky bonds and the riskfree asset. Holding everything else fixed, if the correlation between stock and bond goes down, what would happen? (choose all that applies) A. the Sharpe ratio of the tangency portfolio would increase B. the Sharpe ratio of the tangency portfolio would decrease C. the Sharpe ratio of the tangency portfolio would remain unchanged D. the stock and bond weight for the tangency portfolio would change E. the stock and bond weight for the tangency portfolio would remain unchanged OO
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