Based on the historical returns in Exhibit 19.2, calculate the mean and standard deviation of return in dollars for an equal-weighted portfolio of Canadian and Chinese stocks. Calculate the Sharpe index for this portfolio using the historical mean return on U.S. T-bills as the risk-free rate.

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Sharpe Index EXHIBIT 19.2 Performance of National Stock Market Indices (2000-2014) in U.S. Dollars Correlation coefficients (%) (%) index Beta CA CH GE IN JA UK US W Canada 11.0 28.1 0.34 1.11 China Germany 9.1 31.1 18.0 42.1 0.39 1.18 0.72 0.24 1.47 0.76 0.65 India 7.5 30.8 0 20 129 0.70 0.67 0.64 Japan 3.5 20.0 0.10 0.70 0.60 0.51 0.56 0.56 UK 7.2 23.5 0.24 1.00 0.82 0.66 0.87 0.63 0.61 US 6.6 19.6 0.26 0.93 0.81 0.63 0.88 0.62 0.57 0.85 World US T-bills 6.6 20.9 1.5 1.7 0.24 0.00 1.00 0.86 0.69 0.93 0.68 0.68 0.93 0.97 0.00 0.05 0.14 0.04 0.08 0.00 0.03 -0.05 0.00