Using the annual returns for years 35 in Spreadsheet 5.2: a. Compute the arithmetic average return. b.

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Using the annual returns for years 3–5 in Spreadsheet 5.2:

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.

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ISE Investments

ISBN: 9781260571158

12th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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