The analysts at BB&T Bank in USA forecasted that the return on S&P500 index portfolio over the coming year will be 25%. The one-year T-Bill rate is 6%. While examining the recent returns of the index, the analysts estimated that the standard deviation of these returns will be 30%. 1. What is the Sharpe ratio of the portfolio? OA) 1.974 O B) 1.045 C) 0.633 OD) 3.168 E) None of the above 2. At which level of risk-aversion "A" is the risk-free asset preferred to the risky portfolio? OA) "A" has to be lower than 4.22 O B) "A" has to be higher than or equal to 4.22 OC) "A" has to be higher than or equal to 7.68 OD) "A" has to be lower than 7.68 E) None of the above