Suppose that all stocks in an equity market can be grouped into two mutually exclusive portfolios (that is, with each stock appearing in only one portfolio): value stocks and growth stocks. -Assume...

Suppose that all stocks in an equity market can be grouped into two mutually exclusive portfolios (that is, with each stock appearing in only one portfolio): value stocks and growth stocks.

-Assume that these two portfolios are equal in size by market value and the correlation of their returns is 0.3.

-Value stocks have an expected return of 14% and a standard deviation of return of 20%.

-Growth stocks have an expected return of 18% and a standard deviation of return of 24%.

-If the riskfree rate is 6%, calculate the Sharpe ratio of an equally-weighted portfolio of the value and growth stock portfolios.
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