The stock of APPL sells $190 per share (Latest Close Price) on June 13^th, 2023. The rate on Treasury bills is 1.4%. Suppose an analyst at Morgan Stanley just announced the following forecast on the APPL stock price range on July 13^th, 2023:

Economy StatusProbabilityAPPL Stock Price xBoom20%Normal economy65%Recession15%

1. Suppose you totally trust this forecast from the analyst, calculate the expected holding-period return and standard deviation of the holding-period return over one month for APPL stock as well as the corresponding Sharpe ratios if you are (i) extremely pessimistic; (ii) extremely optimistic . (Do not round intermediate calculations. Round your answers to 4 decimal places.) (Hint: think about what your prediction of the exact stock price will be within each possible stock price range if you are extremely pessimistic or extremely optimistic and then use the exact price to calculate expected return and standard deviation)

$195x$220 $185x$195 $170x$185