Optimal risky portfolio from this stock and bond portfolio

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Assume the risk–free rate is 1.75%. You put 70% of your money in a stock portfolio that has an expected return of 11.75% and a standard deviation of 28%. You put the rest of you money in a risky bond portfolio that has an expected return of 2.65% and a standard deviation of 12%. The stock and bond portfolio have a correlation 0.33. what is the bond weight in the tangency portfolio formed by creating the optimal risky portfolio from this stock and bond portfolio? what is the Sharpe ratio of the tangency portfolio formed by creating the optimal risky portfolio from this stock and bond portfolio?

Reference no: EM131449428

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