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You put 50% of your money in a stock portfolio that has an expected return of 12% and a standard deviation of 20%. You put
You put 50% of your money in a stock portfolio that has an expected return of 12% and a standard deviation of 20%. You put 50% of your money in a risky bond portfolio that has an expected return of 5% and a standard deviation of 8%. The stock and bond portfolio have a correlation -0.1. The risk-free rate is 2%. What is the Sharpe ratio of your portfolio?
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