(Descriptive statistics for S&P 500) The exercise file online contains longterm data on the S&P 500 index and on the annual risk-free rate of return.

Use the data to calculate:

a. The S&P 500 annual return and the annual return in excess of the risk-free rate.

b. The mean, standard deviation, and Sharpe ratio of the S&P 500.

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A B 1 C D E F STANDARD & POOR'S 500 (S&P 500) SHARPE RATIO G One year S&P 500 2 Date adjusted price Annual return risk-free S&P minus return risk-free 3 31-Dec-1989 4 31-Dec-1990 329.08 Mean 343.93 6.82% 5 31-Dec-1991 408.78 4.12% Standard deviation Sharpe ratio 6 31-Dec-1992 438.78 3.61% 7 31-Dec-1993 481.61 3.63% 8 31-Dec-1994 470.42 7.20% 9 31-Dec-1995 636.02 5.18% 10 31-Dec-1996 786.16 5.51% 11 31-Dec-1997 980.28 5.51% 12 31-Dec-1998 1,279.64 4.53% 13 31-Dec-1999 1,394.46 5.98% 14 31-Dec-2000 1,366.01 5.32% 15 31-Dec-2001 1,130.20 2.17% 16 31-Dec-2002 855.70 1.32% 17 31-Dec-2003 1,131.13 1.26% 18 31-Dec-2004 1,181.27 2.75% 19 31-Dec-2005 1,280.08 4.38% 20 31-Dec-2006 1,438.24 5.00% 21 31-Dec-2007 1,378.55 3.34% 22 31-Dec-2008 825.88 0.37% 23 31-Dec-2009 1,073.87 0.47% 24 31-Dec-2010 1,286.12 0.29% 25 31-Dec-2011 1,312.41 0.12% 26 31-Dec-2012 1,498.11 0.16% 27 31-Dec-2013 1,782.59 0.13% 28 31-Dec-2014 1,994.99 0.10% H S&P 500 minus risk-free return