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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
is 8%. Please calculate the Sharpe ratios for Apple, Banana and the portfolio.
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