An employee contributes $15,800 to a 401(k) plan each year, and the company matches 10 percent of this annually, or $1,580. The employee can allocate the contributions among equities (earning 11 percent annually), bonds (earning 5 percent annually), and money market securities (earning 3 percent annually). The employee expects to work at the company 20 years. The employee can contribute annually along one of the three following patterns:

	Option 1		Option 2		Option 3
Equities		60%					50%					40%
Bonds		40%					45%					50%
Money market securities		0%					5%					10%
		100%					100%					100%

The standard deviations of Equities, Bonds, Money market securities are 10%.

The correlation between Equities and Bonds is 50%.

The correlation between Equities and Money market securities is 50%.

The correlation between Money market securities and Bonds is 50%.

The risk free rate equals 0%.

Assume the employee chooses Option 2 under the above assumptions. What is the expected Sharpe ratio of this investment? (Round your numerical answer to 2 decimal places. (e.g., enter 0.08, but not 8% or 8.00%))

Note: Here is the table in text.

Option 1 : 60% Equities , 40% Bonds, 0% Money market securities

Option 2: 50% Equities , 45% Bonds, 5% Money market securities

Option 3: 40% Equities , 50% Bonds, 10% Money market securities