Question: 4. Using the annual returns for years 2003-2005 in the table below, Period 2001 2002 2003 2004 HPR 1 +HPRIndex .2 .2 .2 .2 .2

4. Using the annual returns for years 2003-2005 in the table below, Period 2001 2002 2003 2004 HPR 1 +HPRIndex .2 .2 .2 .2 .2 0.1189 0.2210 0.2869 0.1088 0.0491 0.0196 0.0586 0.0707 0.0077 0.88110.8811 7790 0.6864 2869 0 088 0.9794 0491 1.0275 a. Compute the arithmetic average return b. Compute the geometric average return. c. Compute the standard deviation of returns. d. Compute the Sharpe ratio assuming the risk-free rate was 6% per year

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