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Suppose the Investor is based in Europe and uses euro as the currency. Expected return...

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Finance

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Suppose the Investor is based in Europe and uses euro as the currency. Expected return on MSCl equity index is 7% Expected return on bonds is 4% The risk free rate is 1% The correlation between MSCl equity index and bond is 0.3 What is the optimal portfolio, obtained by maximizing the Sharpe Ratio? none of the answers given 0.30 0.35 0.28

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