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Your complete portfolio is 70% invested in a risky asset and 30% invested in a Treasury bill (the risk-free asset). The risky asset has an
Your complete portfolio is 70% invested in a risky asset and 30% invested in a Treasury bill (the risk-free asset). The risky asset has an expected rate of return of 30% and a standard deviation of 25% and the Treasury bill has a rate of return of 5%. The Sharpe ratio of your complete portfolio is approximately 0.93 0.84 1.5 1
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