Suppose the risk-free rate is constant at 1% a year. 1. Compute the arithmetic average and geometric average for stock returns of the following stock. 2. Compute the sample mean and sample standard deviation of excess returns, and use them to compute Sharpe ratio. Hint: use equation (5.18) on page 125 and see CH5A slides Year, t Return, r(t) 1st 2nd 3rd 4th 5th 11% 21% -7% 6% 13%