You are a fund manager at a pension fund, and you consider three funds to invest. You have two risky funds (Stock fund and Bond fund) and one risk-free fund (money market fund) that provides a risk-free rate of 6%. The characteristics of the risky funds are as follows:

The correlation between two risky funds returns is 0.09. What is the Sharpe ratio of the best feasible CAL? (Write your answer as a decimal rounded to 4 places.)

Standard Deviation Expected Return 21% 28% Stock fund (S) Bond fund (B) 12% 18%