The expected return of stock S is 0.07, the expected return…

The expected return of stock S is 0.07, the expected return of stock B is 0.08, and the risk-free rate is 0.02.  The var-cov matrix of S and B:             |       S               B             S |     0.2                            B |     0.06         0.3 a.  Calculate the Sharpe ratio of MVP.  b.  Calculate the Sharpe ratio of optimal risky portfolio O.  c.  An investor invested $8,500 of the complete portfolio in the optimal risky portfolio O and $1,500 in T-bills.  Calculate the Sharpe ratio of this complete portfolio.