Question: Please solve in EXCEL and show Formulas 1. Compute the arithmetic average, variance, standard deviation and Sharpe ratio for each of the three stocks. a.
Please solve in EXCEL and show Formulas
1. Compute the arithmetic average, variance, standard deviation and Sharpe ratio for each of the three stocks. a. For the Sharpe ratio, use 3.0% as the risk free rate 2. Compute the holding period return and the compound average return (CAGR) for each stock using the product function in excel or using the geomean function. 3. Construct the returns that would have been earned by an investor who invested in all 3 companies in equal dollar amounts (each stock has a portfolio weight of 1/3). 4. Compute the arithmetic average, variance, standard deviation and Sharpe ratio for the the equally weighted portfolio from #3. 5. Use the excel function correlation or choose the correlation data analysis tool to determine all of the relevant correlations.

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