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Investors can choose to purchase either a risky portfolio or a riskless T - bill. The T - bill costs $ 9 5 today and

Investors can choose to purchase either a risky portfolio or a riskless T-bill. The T-bill costs
$95 today and will be worth $100 at the end of the year. The risky portfolio costs $580 today. If
the economy does well, which occurs with probability 0.3, the risky portfolio will be worth $720
at the end of the year. If the economy just treads water, which occurs with probability 0.5, the
risky portfolio will be worth $600 at the end of the year. If the economy does poorly, which
occurs with probability 0.2, the risky portfolio will be worth $520 at the end of the year. Use
scenario analysis to calculate the Sharpe ratio of this portfolio. SHOW WORK!
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