Question 7 Assume you intend to estimate the Sharpe ratio and compound returns for a portfolio. Your analysis is to be based on a time series of historical asset returns, with the mean of the series adjusted in line with the expected return according to the 'implied views' method. Which of the following set of Excel functions can be used to perform this analysis? (a) AVERAGE(), SUMPRODUCT(), SLOPE(), STDEV(), LN(), EXP() (b) MEAN(), SUMPRODUCT(), BETA(), STDEV(), LOG(), EXP() (c) AVERAGE(), SUMPRODUCT(), BETA(), STDEV(), LN(), EXP() (d) AVERAGE(), PRODUCT(), BETA(), STDEVO), LOG(), EXP() (e) MEAN(), PRODUCT(), SLOPE(), STDEV(), LN(), EXPON() Question 8 Nominate which of the following statements best describes the concept of 'sequential risk when applied to defined contribution pension funds, as discussed in the course reading by Smith and Collie (2008). (a) The timing of contributions has an important influence on pension fund risk. (b) Pension fund investors lose the most when they suffer a sequence of negative returns. (c) The impact of negative returns is greatest when it occurs early in the accumulation phase. (d) The impact of negative returns is greatest when it occurs close to retirement. (e) None of the above describes sequential risk as discussed by Smith and Collie