Question: Table 3 (below) shows annual returns for the S&P 500 for the years 2000-2016: Table 3: Annual Returns Year Returns 2000 -9.0% 2001 -11.9% 2002

  1. Table 3 (below) shows annual returns for the S&P 500 for the years 2000-2016:

Table 3: Annual Returns

Year

Returns

2000

-9.0%

2001

-11.9%

2002

-22.0%

2003

28.4%

2004

10.7%

2005

4.8%

2006

15.6%

2007

5.5%

2008

-36.6%

2009

25.9%

2010

14.8%

2011

2.1%

2012

15.9%

2013

32.2%

2014

13.5%

2015

1.4%

2016

11.7%

Calculate:

  1. The cumulative return over the 17 years;
  2. The average annual return;
  3. The standard deviation;
  4. The Sharpe Ratio (assuming a risk free rate of 2.3% on average)

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