(Please Use Excel and show all the work and formulas)

Q3, Michael is trying to evaluate the following three assets for future investment considerations:

a. Determine the expected return of each asset. Show your work.

b. Determine the standard deviation of each asset. Show your work.

c. Determine the Sharpe ratio of each asset (assuming the risk-free rate is 3.5%). Show your work.

d. Based on (c), which of the asset will be considered as the best investment? Explain.

7 State 1 2 3 4 5 Probability 0.10 0.15 0.40 0.20 0.15 Asset A 12% 9% 5% 1% -2% Asset B 20% 15% 8% -2% -12% Asset C 6% 5% 4% 3% 2%