Solution-Compute the sharp ratio of the combined risky

Compute the sharp ratio of the combined risky portfolio.

Reference no: EM13852780

Risk-Free Assets

Assets	Portfolio Allocation	Expected Rate of Return	Expected Standard Deviation
T-Bills	20	2.0%	0

Risky Assets

Bonds	60	5.0%	15
Stocks	20	14.0%	35

1)Assuming the correlation between stocks and bonds is 0.25, compute the Standard Deviation of the combined risky portfolio.

2)Compute the Sharp Ratio of the combined risky portfolio.

3) If you had $100,000 to invest in the portfolio based on the allocation above- including cash, compute the a) expected $ profit and b) expected WAHPR.

Reference no: EM13852780

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Compute the sharp ratio of the combined risky portfolio.

Reference no: EM13852780

Reference no: EM13852780

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