Following table shows information of probable scenarios and associated return of an equity Y. (Note: You must have to show the calculation)

State	Probability of State	Return in state
Excellent	0.25	0.35
Good	0.45	0.18
Poor	0.25	-0.05
Crash	0.1	-0.52

A) Calculate expected return of the equity Y. (5 points)

B) Calculate standard deviation of the equity Y. (5 points)

C) Consider a risk-free asset X of which the rate of return is 3%. Create a portfolio that consists of risky equity Y and risk-free asset X Calculate portfolio return and standard deviation for each of following set of allocation of investment budget.

Allocation in equity	Allocation in risk-free asset	Portfolio return	Portfolio SD
0.1	0.9
0.2	0.8
0.3	0.7
0.4	0.6
0.5	0.5
0.6	0.4
0.7	0.3
0.8	0.2
0.9	0.1
1	0

Draw a capital allocation line with horizontal axis showing portfolio SD and vertical axis showing portfolio return. (5 points)

d).Calculate and interpret the sharp ratio. (5 points)