4. 1) What is the geometric average return of the following quarterly returns: 3%, 5%, 4%, and 7%? (5 marks) 2) You have the following rates of return for a risky portfolio for several recent years: 2013 35.23% 2014 18.67% 2015 -9.87% 2016 23.45% If you invested $1,000 at the beginning of 2013, what would your investment be worth at the end of 2016 (using geometric average return)? (6 marks) 3) A portfolio's expected return is 12%, its standard deviation is 20%, and the risk-free rate is 4%. What is the portfolio's Sharpe ratio? What would happen to the Sharpe ratio if there is an increase of 1% in the expected return? What would happen to the Sharpe ratio if there is a decrease of 1% in the risk-free rate? (9 marks)