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Suppose you are holding stock A and there are three possible outcomes. Outcome 1 happens with 20% probability and -20% return. Outcome 2 happens with

Suppose you are holding stock A and there are three possible outcomes. Outcome 1 happens with 20% probability and -20% return. Outcome 2 happens with 40% probability and 20 return. Outcome 3 happens with 40% probability and 50% return. What is the Sharpe Ratio of stock A?

0.325

0.246

1.473

0.931

question 17

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