C ) Effective monthly return ( Geometric return ) given the 5- year holding period return Computed above ` ) Effective annual return ( Geometric return ) given the 5- year holding period return* Computed above ) APR assuming monthly compounding ( i.e. , Using numbers from ( d ) I ) Wealth as of 12 /31 /07 assuming you had invested $1 , 000 01 12 /31 / 02 based on closing* NAV . $ ) Average monthly return over the 5 - year period h ) How does the average monthly return compare with effective monthly return ?" Is the difference between two numbers consistent with what you expect ?" 1 ) If you expect history to repeat itself , what is your best estimate of the forecast of expected monthly return ?" ) Standard deviation of monthly return over the 5 - year period K ) If you expect history to repeat itself , what is the best estimate of the forecast of the standard deviation of Inc if monthly returns ? 1 ) Monthly excess return over the 5 - year period 17 ) Risk premium over the 5 - year period 11 ) Standard deviation of monthly excess return over the 5 - year period O ) Sharpe ratio P ) Sharpe ratio using the standard deviation of return in the denominator . Why is it different* from the Sharpe ratio computed above ? 9) Inflation rate for each month [ ) Real return for each month 5 ) 5 - year holding period real return t ) Wealth in real terms as of 12 / 31 /07 assuming you had invested $1 , 000 01 12 / 3 1 / 02 based on closing NAV . Assignment 2 based on Chapter 6