3. Sharpe Ratios: What are the Sharpe natios for the S\&P and Gold? 4. Equal-weighted Parifolios: Calculate the expected returns and standard deviations of the equal-weighted portfolio that invests 50% and 50% in the two risky securities (S\&P and Gold). What is its Sharpe Ratio? \begin{tabular}{lll} 2009 & 1115.10 & 1087.50 \\ 2010 & 1257.64 & 1420.25 \\ 2011 & 1257.60 & 1531.00 \\ 2012 & 1426.19 & 1664.00 \\ 2013 & 1848.36 & 1204.50 \\ 2014 & 2058.90 & 1135.80 \\ 2015 & 2043.94 & 1060.30 \\ 2016 & 2238.83 & 1061.19 \end{tabular} \begin{tabular}{lll} 2017 & 2673.61 & 1236.50 \\ 2018 & 2506.85 & 1281.66 \end{tabular} 1. Data: This project makes use of annual data for two risky securities: the S\&P 500 Index and Gold. Annual values for each of these securities during the period from 1975-2018 are pristided in a spreadsheet posted on Canvas. You should use an annual risk-froe rate of 4% for this project. 2. Refurn Calculations: Calculate annual returns for each of the two securities from 1976 through 2018. Calculate the average annual return, the standard deviation of annual returns. and the correlation between the returns of the two securities during this period and fill in the table provided. (Note: all of these calculations are based on annual security \% returns NOT index values). Attach the spreadshect showing all of the relevant calculations as Exhibit I. Some useful Excel functions: to conpute average return, use the function AVERAGE; for standard deviation, use STDEV, for correlation, use CORREL. 3. Sharpe Ratios: What are the Sharpe rutios for the S\&P and Gold? 5. The Tangency Portfolio: What are the portfolio weights in the Tangency Portfolio? What are the mean and standard deviation of the Tangency Portfolio? What is its Sharpe Ratio? 6. The Minimum-Variance Porlfolio: What are the portfolio weights in the Minimum Variance Portfolio? What are the mean and standard deviation of the Minimum Variance Portfolio? What Es its Starpe Ratio? Page \begin{tabular}{|rrr|} \hline \multicolumn{1}{|c}{ DATE } & S\&P 500 Index & Gold Prices \\ \hline 1975 & 90.19 & 139.30 \\ 1976 & 107.46 & 133.80 \\ 1977 & 95.10 & 160.45 \\ 1978 & 96.11 & 207.83 \\ 1979 & 107.94 & 455.08 \\ 1980 & 135.76 & 594.92 \\ 1981 & 122.55 & 410.09 \\ 1982 & 140.64 & 444.30 \\ 1983 & 164.93 & 389.36 \\ 1984 & 167.24 & 320.14 \\ 1985 & 211.28 & 320.81 \\ 1986 & 242.17 & 391.23 \\ 1987 & 247.08 & 486.31 \\ 1988 & 277.72 & 418.49 \\ 1989 & 353.40 & 409.39 \\ 1990 & 330.22 & 378.16 \\ 1991 & 417.09 & 361.06 \\ 1992 & 435.71 & 334.80 \\ 1993 & 466.45 & 383.35 \\ 1994 & 459.27 & 379.29 \\ 1995 & 615.93 & 387.44 \\ 1996 & 740.74 & 369.00 \\ 1997 & 970.43 & 288.74 \\ 1998 & 1229.23 & 291.62 \\ 1999 & 1469.25 & 282.37 \\ 2000 & 1320.28 & 271.45 \\ 2001 & 1148.08 & 275.45 \\ 2002 & 798.55 & 321.18 \\ 2003 & 1111.92 & 417.25 \\ 2004 & 1211.92 & 435.60 \\ 2005 & 1248.29 & 513.00 \\ 2006 & 1418.30 & 635.70 \\ 2007 & 1468.36 & 836.50 \\ 2008 & 903.25 & 869.75 \\ 2000 & 1115.10 & \\ & & \\ 1092.50 \\ \hline \end{tabular}