Question: Compute the annualized average return and the annualized sample volatility for the S&P 500 from 04/2012 to 12/2021. What is the Sharpe ratio of the
Compute the annualized average return and the annualized sample volatility for the S&P 500 from 04/2012 to 12/2021. What is the Sharpe ratio of the S&P 500 in this sample? ( Note: Make sure to annualize all your measurements. You can take the annualized average risk-free rate as a proxy for the unique risk-free rate)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
