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risk free rate is 4.5% The following are gold's annual rate of return for the last 30 years-what is gold's Sharpe ratio if the risk-free
risk free rate is 4.5% 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 ha A 0.011 B 0.056 0.072 0.381 Year % Return 1990 2.49 1991 9.62 1992 -5.80 D 1993 17.35 Hint: Use the following formula with AVERAGE and STDEV.S functions 2 3 4 S Sharpe Ratio In equilibrium, assets are priced based on risk - High risk assets offer higher returns than low risk 17 18 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 -2.09 1.10 -4,43 -21.74 -0.61 1.18 6.26 1.41 23.96 21.74 4.97 17.12 23.92 31.59 3.41 Need to risk adjust returns to compare returns of assets with different levels of risk Sharpe Ratio 19 20 21 22 23 24 25 26 SR - op 27 27.63 27.74 11.65 5.68 28 20 2012
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