Question: Show all work and give explanation please. Will give thumbs up. 1. (20 points) Consider recent monthly prices and dividends for Kraft Heinz Co. (KHC)
Show all work and give explanation please. Will give thumbs up.
1. (20 points) Consider recent monthly prices and dividends for Kraft Heinz Co. (KHC) stock: The Kraft Heinz Company Date Stock Price Dividend 10/1/2018 57.91 9/1/2018 54.48 8/1/2018 57.63 $0.62 Calculate monthly holding period returns for KHC stock for September and October. a. b. Calculate monthly expected returns and volatility for KHC stock c. Calculate anualized expected returns and volatility for KHC stock. d. Assume the annual risk free rate is 2%. What is the expected (annualized) Sharpe ratio for this investment? How does it compare to the average historic Sharpe ratio for investing in the US stock market
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