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1- The share price of IBM is $141 today and it was $149 one year ago. If you invested $149000 in IBM stock a year
1- The share price of IBM is $141 today and it was $149 one year ago. If you invested $149000 in IBM stock a year ago,
then what is your HPR up to today (Keep two decimal places.)?
2- The expected return of a stock is 10% per year, and its volatility is expected to be 14% per year.
The current risk-free rate is 3% per year. The risk-premium is 7%. Calculate the Sharpe ratio of the stock.
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