Question
HNW Advisors are based in California have averaged monthly return of 2.5% with a monthly volatility of 14% over the last year. During the same
HNW Advisors are based in California have averaged monthly return of 2.5% with a monthly volatility of 14% over the last year. During the same time period, the S&P500 has averaged a daily return of 0.09% with a daily volatility of 0.95%. We also know that the 1 year LIBOR rate is 1.0%, the HIBOR rate is 2.5%, the 1-year Treasury rate is 0.50% and the average California municipal bond rate is 3%.
Calculate the annualized return for both HNW Advisors and the S&P500
HNW Advisors S&P500
48.50% 22.92%
34.48% 25.22%
34.48% 19.55%
48.50% 15.02%
Calculate the annualized volatility for both HNW Advisors and the S&P500
HNW Advisors S&P500
48.50% 15.02%
34.48% 19.98%
34.48% 25.22%
48.50% 21.22%
Which risk free would we use to calculate the Sharpe Ratio?
LIBOR Rate
HIBOR Rate
Treasury Bill Rate
California Municipal Bond Rate
Calculate the Sharpe Ratio
HNW Advisors S&P500
0.70 0.66
0.68 1.49
0.68 1.65
Can you please attach working out
0.70 1.65
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