Using the information from problem 3, what is the Sharpe ratio of the tangency portfolio formed by creating the optimal risky portfolio from this stock and bond portfolio? Enter your answer rounded to two decimal places. For example, if your answer is 12.345 then enter as 12.35 in the answer box. Note that the Sharpe ratio is shown as a decimal not a percentage.

Problem 3:

Assume the riskfree rate is 2.50%. Using the stock and bond portfolios from problem 1, what is the stock weight in the tangency portfolio formed by creating the optimal risky portfolio from this stock and bond portfolio? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.

answer: 1.17