Here is some information based on the daily price of Ethereum (ETH) for the last three months from July to October 2020. In addition, beta of ETH is estimated to be 0.5, the 10-year government bond yield is currently 1.5% and the average daily return for all ordinary index is 5%.

Highest Daily Price (USD)= 477.05

Lowest Daily Price (USD)= 222.96

Average Price (USD)= 336.64

Highest Daily Return= 93.27%

Lowest Daily Return= -45.02%

Average Return= 4.73%

STD= 34.59%

Give information above, you are required to answer the following questions.

(1) Find out the Sharpe Ratio of ETH

(2) Find out the Daily Alpha of ETH

(3) Based on five-year monthly data, thebetaof Tesla is 1.64 and thebetaof Facebook is 1.26. Explain the meaning ofbetaand what are the possible forces to push the beta of ETH to be much lower than one.

(4) Based on the results of two measures above and your understanding of cryptocurrency, will you consider invest in ETH andWHY?