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Question 1 (40 points): There are 3 stocks with the yearly expected return and the standard deviation as follows: Stock E(r) Standard deviation (r) Stock 1 8% 10% Stock 2 9% 12% Stock 3 12% 18% The annual risk-free rate is 3%. (i) Calculate the Sharpe Ratio for Stock 1,2,3 (12 points) (ii) There are 3 investors with the risk aversion as Ai=2.0, A2=3.5, A3=5.0. Calculate the utility of investing in Stock 1,2,3 by Investor 1,2,3 respectively and indicate the best choice for each of the three investors (28 points)