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please help Question 01 { 1 The following are gold's annual rate of return for the last 30 years-what is gold's Sharpe ratio if the
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Question 01 { 1 The following are gold's annual rate of return for the last 30 years-what is gold's Sharpe ratio if the risk-free rate has been 4.5%? 0.13 0.22 A B c D 0.31 0.40 Year % Return 1990 -9.62 1991 -5.80 1992 17.35 1993 -2.09 1994 1.10 1995 -4.43 1996 -21.74 Hint: Use the following formula with AVERAGE and STDEV.S functions 1997 -0.61 1.18 Sharpe Ratio In equilibrium, assets are priced based on risk - High risk assets offer higher returns than low risk 1998 1999 -6.26 1.41 23.96 21.74 Need to risk adjust returns to compare returns of assets with different levels of risk 4.97 17.12 Sharpe Ratio SR = E[rpri 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 23.92 31.59 3.41 27.63 27.74 11.65 5.68 -27.79 -0.19 -11.42 9.12 11.85 2016 2017 - 1.15 18.83 2018 2019 24.17Step by Step Solution
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