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The returns of stock ZZZ over the past 5 years have been 21.54%, -11.06%, -7.91%, -4.13%, and -7.29%. The risk-free rates over the past five
The returns of stock ZZZ over the past 5 years have been 21.54%, -11.06%, -7.91%,
-4.13%, and -7.29%. The risk-free rates over the past five years were 2.12%, 2.63%,
2.36%, 2.17%, and 2.91%, respectively. The standard deviation of the stock's excess
returns over the past 5 years is 13.4649% (I'm giving this to you so you don't have to
calculate it yourself). What is the Sharpe ratio of the stock based on its past 5 years
of returns? Round all intermediate calculations to 6 decimal points. Your final answer
should be within 0.03 of the correct answer choice.
-0.13
0.05
-4.21
-0.31
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