The return statistics for two stocks and the risk-free asset, Treasury bills, are given below:. Α B C D
1 Stock A Stock B T- bills
2 Expected return 0.09 0.065 0.02
3 Variance 0.09 0.0729
4 Standard deviation 0.3 0.27
5 Covariance 0.0243
Part 1. What is the Sharpe ratio of the optimal risky portfolio?
Part 2. What is the standard deviation of a portfolio composed of 40% optimal risky portfolio and 60% risk-free asset?

According to herman, one of the differences of managing a nonprofit versus a for-profit corporation is

Suppose the real risk-free rate and inflation rate are expected to remain at their current levels throughout the foreseeable future. consider all factors that affect the yield curve. then identify which of the following shapes that the u.s. treasury yield curve can take. check all that apply.

Aproduction line has three machines a, b, and c, with reliabilities of .96, .86, and .85, respectively. the machines are arranged so that if one breaks down, the others must shut down. engineers are weighing two alternative designs for increasing the line’s reliability. plan 1 involves adding an identical backup line, and plan 2 involves providing a backup for each machine. in either case, three machines (a, b, and c) would be used with reliabilities equal to the original three. a. compute overall system reliability under plan 1. (round your intermediate calculations and final answer to 4 decimal places.) reliability b. compute overall system reliability under plan 2. (round your intermediate calculations and final answer to 4 decimal places.) reliability c. which plan will provide the higher reliability? plan2plan1