Refer toTable6.3and consider these three-year strategies: Three-In (fully invested in the risky portfolio in each of the three years); One-In (fully invested in the risky portfolio in one year, and in the risk-free asset in the other two); and Third-In-Three (one-third of the portfolio invested in the risky portfolio and the remainder in T-bills in each of the three years).

TABLE 6.3 Two-year risk premium, variance, Sharpe and price of risk for three strategies Strategy: Tiriro-ln1 Cine-In2 Risk premium R+R=2i 0+R=R Variance a? + 0'2 = 20'2 O + a\"2 = or2 Sharpe ratio\" i = 511.1"? Rio = S1 0"\"? Price of risk5 RIG: = P1 Jii'r'tr2 = P1 lTwoIII." Invest entirely in the risky portfolio for two years. 2{flee-111: Invest entirely in the risky portfolio forone yea: and in rhe risk-free asset in the other. 3Half-in-Two: Im'esl half the budget in the risky portfolio for two years. Risk premium. Standard deviation span: of risk 2 3'5}: \"mum 4Sharpe ratio = a. Create a table lilte Table 6.3 forthese three strategies. Strate- Tl'reeln One-In Tli'd-ln-Three R+R+R=3R l]+l]+Fi=F:' 3x1l3R=R D az+ad+aa=3z 0+U+az=nz {12.8 E 43-: are He = 51 47: m g F 3 0'3! 3 ma2=n mar2=n ngaa a in. Which strategyr has the lowest Sharpe raljo'? Cl Threeln 0'5} OneIn Cl ThirdIn Three c. Which strategy.r provides the highest price of risI-t? U Threeln CI One-In HIE ThirdIn Three