Question 12. You are trying to estimate Sharp ratios for assets E and B. The risk-free rate is 1.2% Together with the research department you have come to the following estimates: Asset E Asset B State return probability State return probability Good 20% 35% Good 7% 10% Average 9% 35% Average 4% 65% Poor -10% 30% Poor 1% 25% a) What is the expected return for E? b) What is the standard deviation for B? c) Which of the two has the highest Sharpe ratio, E or B? Only answer E or B