DDII'II 4. Question 4 Answer Question 4 and 5 based on the information below: The annual "Sharpe Ratio" is a metric that combines profitability and risk it measures units of profitability per unit of risk. First calculate the difference between the annual return of a stock and the annual return of a risk free investment in government bonds. Second, divide that difference by the annualized population standard deviation of returns of the stock. For example, if the annual return of a stock is 10%, the annual riskfree bond return is 2%, and the annualized population standard deviation of returns of the stock is 16%, then the Sharpe Ratio : 8%!169'6 = 0.5. For this problem. you can estimate the annualized standard deviation of returns by multiplying your calculated value for the monthly population standard deviation of returns by the square root of 12. Question 4: Assuming the risk-free rate is 1.5% per year over the full 12year interval measuredI which asset had the higher Sharpe ratio: SPY or RSF'? (I. SPY RSF