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Consider the following returns for two investments, A and B , over the past four years: Investment 1 : 2 % 8 % 4 %
Consider the following returns for two investments, A and B over the past four years:
Investment :
Investment :
a Calculate the mean for each investment. Round your answers to decimal places.
a Which investment provides the higher return?
b Calculate the standard deviation for each investment. Round your answers to decimal places.
b Which investment provides less risk?
c Given a riskfree rate of calculate the Sharpe ratio for each investment. Round your answers to decimal places.
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