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You put 40% of your money in a stock portfolio that has an expected return of 10% and a standard deviation of 15%. You put
You put 40% of your money in a stock portfolio that has an expected return of 10% and a standard deviation of 15%. You put 60% of your money in a risky bond portfolio that has an expected return of 4% and a standard deviation of 6%. The stock and bond portfolio have a correlation 0.1. The risk-free rate is 1%. What is the Sharpe ratio of your portfolio?
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