[Solved] An investor has two stocks in her portfol

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An investor has two stocks in her portfolio: Apple and Banana. The weights are 3 0 % for Apple and 7 0 % for Banana.

An investor has two stocks in her portfolio: Apple and Banana. The weights are

30 %

for Apple

and

70 %

for Banana. There are three possible economic states in the future, and the stock

returns in these states are shown below. The risk

-

free rate is

1 %

and the expected market return

8 % .

Please calculate the Sharpe ratios for Apple, Banana and the portfolio.

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