The follow ing table shows the annual returns (in percent) for Fidelity's Electronic and U tilities funds.

a. Calculate the sample mean, the sample variance, and the sample standard deviation fo r each fund.

b. W hich fund had the higher average return?

c. W hich fund was riskier over this tim e period? Use both standard deviation and the coefficient o f variation in your explanation.

d. Given a risk-free rate o f 4%, w hich fund has the higher Sharpe ratio? W hat does this ratio imply? R-96

Transcribed Image Text:

Year Electronic Utilities 2005 13.23 9.36 2006 1.97 32.33 2007 2.77 21.03 2008 -50.00 -35.21 2009 81.65 14.71