Suppose now you use 500 RMB from your savings and borrow 500 RMB to set up a company. The interest rate on your borrowing is 5%. The company's income is also uncertain. In a good year, it will generate 90 RMB of income and in a bad year, it will generate only 40 RMB of income. For this company, a good year occurs with probability 50% and a bad year 50%. The risk free rate is still 2%. 3. What is the Ratio which measures the risk adjusted return on equity in this example? Please round the answer to 2 decimal points. For example if your answer is 1.25, then type 1.25 in the answer box. Answer: Suppose now you use 500 RMB from your savings and borrow 500 RMB to set up a company. The interest rate on your borrowing is 5%. The company's income is also uncertain. In a good year, it will generate 90 RMB of income and in a bad year, it will generate only 40 RMB of income. For this company, a good year occurs with probability 50% and a bad year 50%. The risk free rate is still 2%. 3. What is the Ratio which measures the risk adjusted return on equity in this example? Please round the answer to 2 decimal points. For example if your answer is 1.25, then type 1.25 in the answer box