Question
You have a stock fund with an expected return of 12% and a standard deviation of 22%, a corporate bond fund with an expected return
You have a stock fund with an expected return of 12% and a standard deviation of 22%, a corporate bond fund with an expected return of 6% and a standard deviation of 18% and the risk free rate is 4%. The correlation between the stock and bond funds is 0.15. What is the Sharpe Ratio of the Optimal Portfolio? Round your answer to 2 decimal points (remember, this is not in percentage) Answer:
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Introduction To Financial Models For Management And Planning
Authors: James R Morris, John P Daley
2nd Edition
1498765041, 9781498765046
