Question: Create a user-defined function to calculate the Sharp ratio using the equation (14-17) that was introduced in Chapter 14 on page 450. Use the following

Create a user-defined function to calculate the Sharp ratio using the equation (14-17) that was introduced in Chapter 14 on page 450. Use the following data to test your function:

Year

Return

2013

27.00%

2014

-21.00%

2015

4.00%

2016

23.00%

2017

9.00%

  1. Write the function to accept three arguments: the risk-free rate, the standard deviation of returns, and the average return. Call this function SharpeRatioA.
  2. Rewrite your function so that it accepts the range of returns and makes use of Application.WorksheetFunction to calculate the standard deviation and the average return. Call this function SharpeRatioB.

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