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Show work/formulas The annual returns of a stock and the risk-free interest rate are given as follows: Year 2010 2011 2012 2013 2014 Stock Return
Show work/formulas
The annual returns of a stock and the risk-free interest rate are given as follows:
Year | 2010 | 2011 | 2012 | 2013 | 2014 |
Stock Return | 7% | 5% | -9% | 6% | 15% |
Rf | 2% | 1% | 2% | 0.5% | 1% |
- Calculate the arithmetic average stock return.
- Calculate the geometric average stock return.
- Calculate the standard deviation of stock returns.
- Calculate the risk premium of the stock.
- Calculate the standard deviation of the excess returns.
- Calculate the Sharpe ratio of the stock.
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