Questions: 1/ Automobiles traveling on a road with a posted speed limit of 65 miles per hour are checked for speed by a state police radar system. The following is a frequency distribution of speeds. Speed (miles per hour) 45 up to 55 55 up to 65 65 up to 75 75 up to 85 Frequency 50 325 275 25 The mean speed of the automobiles traveling on this road is the closest to A) 55.0 B) 57.8 C) 64.1 D) 65.0 2/ A portfolio manager generates a 4% return in Year 1, a 12% return in Year 2, a negative 4% return in Year 3, and a return of 8% in Year 4. Compute the annualized return for the entire period. 3/The table below gives statistics relating to a hypothetical 10-year record of two portfolios. Assume other statistics relating to these portfolios are the same and the risk-free rate is 3.5%. Portfolio A Portfolio B Arithmetic Mean Return 15.3% 10.2% Standard Deviation of Return 22.8% 15.9% Using the coefficient of variation and the Sharpe ratio, the fund that is preferred in terms of relative risk and return per unit of risk is A) Portfolio A because it has a higher coefficient of variation and a lower Sharpe ratio B) Portfolio A because it has a lower coefficient of variation and a higher Sharpe ratio C) Portfolio B because it has a higher coefficient of variation and a lower Sharpe ratio D) Portfolio B because it has a lower coefficient of variation and a higher Sharper ratio