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Intro Now that you've looked at this problem, you must complete it in the next 2 hours. The following table shows historical end-of-week adjusted close

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Intro Now that you've looked at this problem, you must complete it in the next 2 hours. The following table shows historical end-of-week adjusted close prices (including dividends) for a stock and the S&P 500. B 1 Week Stock S&P 500 2 0 35.22 3 1 35.86 4 2 38.79 5 3 38.16 35.97 6 4 2,858 2,800 2,823 2,901 2,954 2,880 2,957 2,896 2,994 3,147 7 5 38.27 8 6 40.04 9 7 35.22 10 8 35.55 36.43 11 9 12 10 37.6 3,110 - Attempt 1/1 for 10 pts. Part 10 What is the annual Sharpe ratio of a portfolio with 20% invested in the stock and 80% in the S&P 500? Assume that the expected returns are equal to the realized returns (EARs), and that the annualized variances and covariance stay the same as in the past. Hint: The covariance of returns over N weeks is N times the weekly covariance. Hint: Since we're looking at only one period of one year), the distinction between rebalancing and not rebalancing is irrelevant here. 2+ decimals Intro Now that you've looked at this problem, you must complete it in the next 2 hours. The following table shows historical end-of-week adjusted close prices (including dividends) for a stock and the S&P 500. B 1 Week Stock S&P 500 2 0 35.22 3 1 35.86 4 2 38.79 5 3 38.16 35.97 6 4 2,858 2,800 2,823 2,901 2,954 2,880 2,957 2,896 2,994 3,147 7 5 38.27 8 6 40.04 9 7 35.22 10 8 35.55 36.43 11 9 12 10 37.6 3,110 - Attempt 1/1 for 10 pts. Part 10 What is the annual Sharpe ratio of a portfolio with 20% invested in the stock and 80% in the S&P 500? Assume that the expected returns are equal to the realized returns (EARs), and that the annualized variances and covariance stay the same as in the past. Hint: The covariance of returns over N weeks is N times the weekly covariance. Hint: Since we're looking at only one period of one year), the distinction between rebalancing and not rebalancing is irrelevant here. 2+ decimals

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