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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 for Apple
and for Banana. There are three possible economic states in the future, and the stock
returns in these states are shown below. The riskfree rate is and the expected market return
is Please calculate the Sharpe ratios for Apple, Banana and the portfolio.
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