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Suppose the five-year annual return for the DIJA is 18% and the average return on T-bills is 7%. Investment Average Annual Return Standard Deviation A
Suppose the five-year annual return for the DIJA is 18% and the average return on T-bills is 7%.
Investment | Average Annual Return | Standard Deviation |
A | 14% | 0.86 |
B | 12% | 0.46 |
C | 10% | 0.40 |
- Calculate the Sharpe index for each investment and compare their performance.
- Calculate the Treynor Index for each investment and compare their performance.
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