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Q21. There are two risky stocks and two scenarios. The chance for scenario 1 to...

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Q21. There are two risky stocks and two scenarios. The chance for scenario 1 to happen is 40% and the chance for scenario 2 to happen is 60%. The return of stock A is 30% in scenario 1 and 10% in scenario 2. The return of stock B is 20% in scenario and 50% in scenario 2. Assume the risk-free rate is 4%. Part 1: What is the Sharpe ratio for stock A? Edit View Insert Format Tools Table 7 !! li

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