Q 8.5. Please ignore compounding in this question: 1. What is the risk and reward of the

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Q 8.5. Please ignore compounding in this question: 1. What is the risk and reward of the "10% mean, 20% risk" investment in the text over 4 years? What is your reward-risk ratio? (This ratio is called the Sharpe ratio and often confusingly called a risk-reward ratio.) 2. What is the risk and reward of the 10% mean, 20% risk investment in the text over 9 years? What is the Sharpe ratio? 3. Can you guess what the risk and reward of a stock with annual mean & and risk Sdy is over T years? What is the Sharpe ratio?

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