Assume you have $100 in stock 1 and $200 in stock 2. Stock 1…

Assume you have $100 in stock 1 and $200 in stock 2. Stock 1 and Stock 2 have following probability distribution:                                     Probability          Return on Stock 1           Return on Stock 2Recession                         0.1                           -0.10                               -0.04Normal                             0.6                             0.02                                0.01Expansion                        0.3                             0.10                                 0.03   Assume the risk-free rate is 0.01. Assume the standard deviation of excess portfolio returns is the same as the standard deviation of portfolio returns calculated in the previous question. What is the Sharpe ratio on this portfolio?  

Assume you have $100 in stock 1 and $200 in stock 2. Stock 1…

Assume you have $100 in stock 1 and $200 in stock 2. Stock 1 and Stock 2 have following probability distribution:                                     Probability          Return on Stock 1           Return on Stock 2Recession                         0.1                           -0.10                               -0.04Normal                             0.6                             0.02                                0.01Expansion                        0.3                             0.10                                 0.03   What is the Variance on Stock 1?