You are evaluating the performance of a portfolio that invests in two different bond ETFs: the PIMCO Total Return Active ETF (BOND) and the Blackrock iShares 7-10-Year Treasury ETF (IEF). 75% of the portfolio's money is invested in BOND. The remaining 25% of the portfolio's money is invested in IEF.

BOND has expected excess returns of 3.85%; the standard deviation of BOND's returns is 3.82%. IEF has expected excess returns of 4.85%; the standard deviation of IEF's returns is 6.38%.

The correlation between the returns of BOND and IEF is 0.60.

a) What is the portfolio's expected excess return (Answer in %)?

b) What is the standard deviation of the portfolio's returns (Answer in percent)?

c) What is the Sharpe ratio of the portfolio's returns?