Intro The following table shows historical end-of-week adjusted close prices (including dividends) for a stock and the S&P 500. A Week B Stock 31.36 32 34.93 34.3 31.75 34.05 35.82 30.96 31.29 32.17 33.34 C S&P 500 2,500 2,442 2,476 2,509 2,562 2,488 2,559 2,498 2,596 2,749 2,712 8 6 10 8 12 10 Part 10 1 Attempt 6/10 for 10 pts. What is the annual Sharpe ratio of a portfolio with 70% invested in the stock and 30% 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 Submit Intro The following table shows historical end-of-week adjusted close prices (including dividends) for a stock and the S&P 500. A Week B Stock 31.36 32 34.93 34.3 31.75 34.05 35.82 30.96 31.29 32.17 33.34 C S&P 500 2,500 2,442 2,476 2,509 2,562 2,488 2,559 2,498 2,596 2,749 2,712 8 6 10 8 12 10 Part 10 1 Attempt 6/10 for 10 pts. What is the annual Sharpe ratio of a portfolio with 70% invested in the stock and 30% 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 Submit