Can you explain what im supposed to do? I am given an excel sheet that contains the monthly returns from 1999-2013 of value-weighted equity indexes divided into various groups: North America Canada and the United statesJapanAsia Pacific Australia, Hong Kong, New Zealand, and SingaporeEurope Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom Global All of the above countries index returns are in US dollar terms. In addition, the file contains the 1-month US risk-free rate.

Estimate the following for each of the indices. In calculating the statistics, monthly can be interpreted as not annualized.

a.Arithmetic average of monthly return, and annualized arithmetic return using the APR method

b.Geometric average of monthly return, and annualized geometric return using the EAR method. Why does the geometric average differ from the arithmetic average?

c.Standard deviation of monthly returns, and annualized standard deviation

d.Sharpe Ratio of monthly returns, and annualized Sharpe Ratio

e.Skewness of monthly returns

f.Kurtosis of monthly returns

g.5% Value at Risk (VaR) of monthly returns

h.5% Expected Shortfall of monthly returns

i.Only for the Global index: based on your answers for (e)-(h), what do each indicate about using just the standard deviation to estimate risk?