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You are asked to determine what is the Sharpe Ratio for a portfolio that contains 5 0 % Stocks and 5 0 % Bonds. The

You are asked to determine what is the Sharpe Ratio for a portfolio that contains

50 %

Stocks and

50 %

Bonds. The expected annual return and risk estimates are:

If the expected risk

-

free rate is

2 %,

what is its Sharpe Ratio?

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