Problem 3 The graphs below illustrate the properties of 4 assets: The riskless asset (S), an individual stock (stock A), a mutual fund (fund H) and the market portfolio of risky assets (M). 0.16 0.15 0.14 Expected Return. Ein Expected Retum, Eu 000 020 040 060-00 100 120 100 110 0050 E & 0275 eo Betap Standard Deviation, a) What is the Sharpe ratio of stock A? What is the Sharpe ratio of fund ? b) Suppose you could invest in either (1) a portfolio of the riskless asset and stock A, or (2) a portfolio of the riskless asset and fund H. What would you choose and why? c) What is the alpha (a) of stock A? What is the alpha (a) of fund H