A Portfolio Consists of the Following Two Funds What Is the Sharpe Ratio of the Portfolio?
A)

Multiple Choice

A portfolio consists of the following two funds:
$\begin{array}{lrr}&\text { Fund A }& \text { Fund B }\\\text { Expected Return } & 16 \% & 9\% \\\text { Standard deviation } & 21 \% & 11\% \\\text { Portfolio market value } & \$ 27,000 & \$ 33,000\\\text {Weight}&45\%&55\%\\\text {Correlation}{R}_A,{R}_B&0.21\\\text { Rigk-free rate }&2.5\%\end{array}$
What is the Sharpe ratio of the portfolio?

A) .333%
B) .425%
C) .635%
D) .788%
E) .838%