Using the annual returns for years 2003-2005 in the table below, a. Compute the arithmetic average...
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Using the annual returns for years 2003-2005 in the table below, a. Compute the arithmetic average return. b. Compute the geometric average return. c. Compute the standard deviation of returns. d. Compute the Sharpe ratio assuming the risk-free rate was 6% per year. Year Probability HPR 2003 1/3 0.2869 2004 1/3 0.1088 2005 1/3 0.0491 Using the annual returns for years 2003-2005 in the table below, a. Compute the arithmetic average return. b. Compute the geometric average return. c. Compute the standard deviation of returns. d. Compute the Sharpe ratio assuming the risk-free rate was 6% per year. Year Probability HPR 2003 1/3 0.2869 2004 1/3 0.1088 2005 1/3 0.0491
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