1. Jack invested $10000 in year 1 with a return of 30%, and another $10000 in year 2 with a return of 0%, and another 10000 in year 3 with a return of -10%. The market return in the first year is 3%, the market return in the second year is 4%, and the market return in the third year is 5%. The risk-free rate is 0%.
   1. What is the average return (arithmetic average return) of Jack?
   2. What is the sample standard deviation of Jacks investment returns?
   3. What is Jacks portfolios Sharpe ratio?
   4. What is the markets Sharpe ratio?
   5. Jack argues that he beats the market since the average return of his portfolio is higher than the market average return. Is he right? First answer right or wrong, then explain.
   6. Does Jack have market timing ability? First answer yes or no, then explain. (You dont need a linear regression to answer this)