Here is some information based on the daily price of Ethereum (ETH) for the last six...

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Here is some information based on the daily price of Ethereum (ETH) for the last six months, from May to October 2022. In addition, a beta of ETH based on these six months is estimated to be 2.5, the 10-year US government bond yield is currently 4.0% per annum, and the average daily return for S&P is 0.05%.< Highest Daily Lowest Daily Average Highest Daily Lowest Daily Average Price (USD) Price (USD) Price (USD) Return Return Return STD 2940.65 993.64 1581.66 -16.65% -0.2% 4.90% 17.93% له Given the information above, you are required to answer the following questions.< (1) Find out the Sharpe Ratio of ETH based on the six months' data provided and explain the economic meaning of your result.< (2) Find out the Average Daily Alpha of ETH based on the six months' data provided and explain the economic meaning of your result. (4 marks)< (3) Based on six-month monthly data, the beta of ETH has been changed from almost zero March 2021 to 0.8 in May and now 2.5 in October. Explain the economic meaning of beta and discuss what might be the possible forces to push the beta of ETH to change from lower than one to 2.5 in such a short time. (10 marks) (3) Based on the results of the two measures above and your understanding of cryptocurrency, will you consider investing in ETH and WHY? Assume you didn't know how crypto actually performed after the time the data was provided for. (12 marks)< Here is some information based on the daily price of Ethereum (ETH) for the last six months, from May to October 2022. In addition, a beta of ETH based on these six months is estimated to be 2.5, the 10-year US government bond yield is currently 4.0% per annum, and the average daily return for S&P is 0.05%.< Highest Daily Lowest Daily Average Highest Daily Lowest Daily Average Price (USD) Price (USD) Price (USD) Return Return Return STD 2940.65 993.64 1581.66 -16.65% -0.2% 4.90% 17.93% له Given the information above, you are required to answer the following questions.< (1) Find out the Sharpe Ratio of ETH based on the six months' data provided and explain the economic meaning of your result.< (2) Find out the Average Daily Alpha of ETH based on the six months' data provided and explain the economic meaning of your result. (4 marks)< (3) Based on six-month monthly data, the beta of ETH has been changed from almost zero March 2021 to 0.8 in May and now 2.5 in October. Explain the economic meaning of beta and discuss what might be the possible forces to push the beta of ETH to change from lower than one to 2.5 in such a short time. (10 marks) (3) Based on the results of the two measures above and your understanding of cryptocurrency, will you consider investing in ETH and WHY? Assume you didn't know how crypto actually performed after the time the data was provided for. (12 marks)<

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To calculate the Sharpe Ratio we need the average daily return of ETH the riskfree rate and the standard deviation of ETHs daily returns Based on the provided information the average daily return of E... View the full answer