You would like to invest in Ford and Apple stock. Ford has an expected return of 5% and a standard deviation of 32%. Apple has an expected return of 10% and a standard deviation of 25%. They have a correlation of 0.20 and a co-variance of 1.60%. If you put 50% of your wealth in each asset, what will be the Sharpe Ratio of your portfolio?

In the previous question you put 50% in Ford and 50% in Apple stock. Now, imagine you did a Markowitz analysis and found that the optimal weights are 14% Ford and 86% Apple. If you invest according to these weights, what do you expect will happen to the Sharpe Ratio of your portfolio?