The risk-free rate is 2%. All returns are stated in annual terms. The return on Stock Z will depend on the future state of the economy. You predict two possible future states: State Probability Return on Stock z Optimistic 60% 70% Pessimistic 40% -50% What is the forward-looking Sharpe ratio of the return on Stock Z? O 0.63 0.34 O 0.57 0.37