suppose that you are given the following data for past excess
Suppose that you were given the following data for past excess quarterly returns for Markese Imports, Inc., and for the market portfolio:| Excess Retums Markese Imports Quarter 1 2 3 4 5 6 7 8 9 10 0.04 0.05 -0.04 -0.05 0.02 0.00 0.02 -0.01 -0.02 0.04 Excess Returns Market Portfolio 0.05 0.10 -0.06 -0.10 0.02 -0.03 0.07 -0.01 -0.08 0.00 11 12 13 14 15 16 17 18 19 20 21 22 23 24 0.07 0.13 -0.01 0.04 0.01 -0.01 -0.06 -0.09 -0.06 -0.14 -0.02 -0.04 0.07 0.15 0.02 0.06 0.04 0.11 0.03 0.05 0.01 0.03 -0.01 0.01 -0.01 -0.03 0.02 0.04 Calculate the Sharp Ratio of Markese Imports, and the market portfolio; discuss which one you prefer just based on the Sharp Ratio. . a. Calculate the Sharp Ratio of Markese Imports, and the market portfolio: discuss which one you prefer just based on the Sharp Ratio. b. Graph the relationship between the two sets of excess returns and draw a characteristic line. What is the approximate beta? What can you say about the systematic risk of the stock, based on past experience? Suppose that you were given the following data for past excess quarterly returns for Markese Imports, Inc., and for the market portfolio:| Excess Retums Markese Imports Quarter 1 2 3 4 5 6 7 8 9 10 0.04 0.05 -0.04 -0.05 0.02 0.00 0.02 -0.01 -0.02 0.04 Excess Returns Market Portfolio 0.05 0.10 -0.06 -0.10 0.02 -0.03 0.07 -0.01 -0.08 0.00 11 12 13 14 15 16 17 18 19 20 21 22 23 24 0.07 0.13 -0.01 0.04 0.01 -0.01 -0.06 -0.09 -0.06 -0.14 -0.02 -0.04 0.07 0.15 0.02 0.06 0.04 0.11 0.03 0.05 0.01 0.03 -0.01 0.01 -0.01 -0.03 0.02 0.04 Calculate the Sharp Ratio of Markese Imports, and the market portfolio; discuss which one you prefer just based on the Sharp Ratio. . a. Calculate the Sharp Ratio of Markese Imports, and the market portfolio: discuss which one you prefer just based on the Sharp Ratio. b. Graph the relationship between the two sets of excess returns and draw a characteristic line. What is the approximate beta? What can you say about the systematic risk of the stock, based on past experience