WILL RESULT IN THE HIGHEST SHARPE RATIO AMONG THE ALL PORTFOLIO COM...

3. will result in the highest Sharpe ratio among the all portfolio combinations that meet Thurlow’s return requirement. [Sharpe ratio = (.25 x .46) + (.75 x .51) = .4975] ii. Based on the return requirement of 9.4%, the optimal weights of Portfolio 3 and Portfolio 4 is given by: Required Return = (Return on Portfolio 3) x (percentage of overall portfolio invested in Portfolio 3) + (Return on Portfolio 4) x (1 - percentage of overall portfolio invested in Portfolio 3)