PORTFOLIO - 50 points RETURN VARIANCE STDEV RISK-FREE SHARPE 8.33 125.42 11.20 3 0.48 DESCRIPTIVE STATISTICS - 10 POINTS 1 2 3 4 5 6 7 8 9 10 Arithmetic 12.87 7.94 9.10 12.43 3.69 10.98 8.88 3.68 2.95 10.76 Geometric 11.78 7.52 8.53 11.30 2.27 10.20 7.88 3.39 2.77 10.02 Variance 226.92 90.69 123.30 231.33 289.22 167.26 215.32 57.16 35.37 162.28 Standard deviation 15.06 9.52 11.10 15.21 17.01 12.93 14.67 7.56 5.95 12.74 3. Analysis of the nave portfolio with 1/10th invested in each of the 10 funds. This analysis should include return, variance, and standard deviation of this equally-weighted portfolio. Calculate the Sharpe ratio for this portfolio assuming a risk-free rate of three percent. Does this portfolio perform better than the individual funds? If yes, why? If no, why not? Explain what each of these terms means in simple terms