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You are creating a portfolio of two stocks. Both stocks have E(r)=8% and standard deviation of 20%. The two stocks' correlation is 0.6. Calculate the
You are creating a portfolio of two stocks. Both stocks have E(r)=8% and standard deviation of 20%. The two stocks' correlation is 0.6. Calculate the Sharpe ratio of a portfolio containing each stock in 50%-50% ratio! The risk free rate is 2%.
Provide your answer in decimals rounded to two digits.
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