A pension fund manager is considering three mutual funds. Thefirst is a stock fund, the second is a long-term government andcorporate bond fund, and the third is a T-bill money market fundthat yields a rate of 5%. The probability distribution of the riskyfunds is as follows:
| EXPECTED RETURN | STANDARD DEVIATION |
| STOCK FUND (S) | 20% | 35% |
| BOND FUND (B) | 11 | 15 |
The correlation between the fund returns is 0.09.
What is the Sharpe ratio of the best feasible CAL? (Do not roundintermediate calculations. Enter your answers as decimals roundedto 4 places.)
