Loans Firm 1 Firm 2 Portfolio Weight 0.30 0.70 Expected Return 9.5 5.25 Variance 81 25 Standard Deviation 9 5 Correlation Coefficient -0.22 Use the table to answer the following questions. A financial institution has outstanding loans to 2 firms: Firm 1 and Firm 2. What is the Sharpe Ratio if the risk free rate of return is 2%? O 0.294 O 0.907 O 1.156 O 2.176
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