How do you get the answer for 11 b?

8. Looking at Ford's stock What is its arithmetic mean monthly return? 3.95% What is its geometric mean monthly return? 3.63% what is its annualized return? Arithmetic APR-: 47.4%, Geometric APR- 43.61% What is the variance of its returns? 0.00763 what is the standard deviation if its returns? 8.74% a. b. c. d. e, 9. Looking at GM's stock what is its arithmetic mean monthly return? 3.57% what is its geometric mean monthly return? 2.90% what is its annualized return? Arithmetic APR-42.8%, Geometric APR- 34.75% What is the variance of its returns? 0.014647 what is the standard deviation if its returns? 12.10% a. b, c. d. e, 10. Assume the risk free rate is 0.4% per month a. What is Ford's Sharpe Ratio? 0.27, using Geometric Mean Return b. What is GM's Sharpe Ratio? 0.21, using Gcometric Mean Return c. Considering only the Sharpe ratio, which stock is a 'better' investment? Ford has a higher Sharpe ratio, earning more rchurn for its risk than GM. It is therefore a better investment. 11. Assume the correlation between Ford and GM returns is 0.6 What is the return and standard deviation to a portfolio with 50% in Ford and 50% in GM? Return 3.265%, Std. 9.3493% Considering a portfolio of $75,000 invested in the portfolio described in (a). conduct VaR analysis at a 95% confidence level (the coefficient associated with a a. b. 95% confidence level is-1.66485). The lowest probably return is-12.3%, so the VaR is $75,000-12.3% :-S9.225. 10, the highest probable loss. hat is the return and standard deviation to a portfolio with 80% in Ford and 20% in GM? Return 3.484%, Std. 8.6597% Considering a portfolio of $75,000 invested in the portfolio described in (c). conduct VaR analysis at a 95% confidence level (the coefficient associated with a d