Question: The Excel spreadsheet provided at the beginning of this practice quiz, gives one year's daily continually compounded returns for two chemical company stocks, Dow and

The Excel spreadsheet provided at the beginning
The Excel spreadsheet provided at the beginning of this practice quiz, gives one year's daily continually compounded returns for two chemical company stocks, Dow and Dupont, and the S&P 500, a weighted index of 500 large company stocks. Use this spreadsheet to answer the question. Excel Problem Type: Defining the Sharpe Ratio Problem Information: A "Sharpe Ratio" is a way of measuring the performance of an investment asset that takes into account both returns and the standard deviation (also called the volatility) of returns over time. A stock's Sharpe ratio is the difference between its returns and the return of a risk- free investment, such as a government bond, divided by the standard deviation of returns of the asset. For example, if a stock returns 15% per year, and the risk-free asset returns 3% per year, and the volatility of the stock is 18% per year, the Sharpe Ratio is 12%/18% = .67. Question: Assume a risk-free asset returns 2% per year, and the standard deviation of returns of Dupont stock is 20%. What is the Sharpe Ratio for Dupont stock for 2010? Give the answer to two digits to the right of the decimal place

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