The stock of Business Adventure currently sells for $40 per share. Its dividend payment and its year-end price depend on the state of the economy as follows:

Assume the three states of the economy is equally likely to happen.

1. The expected return of the stock for this year is 8.75%

2. The standard deviation o the stock return for this year is 17.91%

Assume the Treasury bills are risk-free. The rate of return by Treasury bills is 4% per year. What is the risk premium of Business Adventures stock? [1] And, what is its Sharpe ratio? [2]