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Use EXCEL formula to complete the question 1.What is standard deviation of weekly returns for the S&P 500? 2.What is the beta of the stock
Use EXCEL formula to complete the question
1.What is standard deviation of weekly returns for the S&P 500?
2.What is the beta of the stock (not the S&P 500)?
3.Assume the risk-free rate (Treasury bill yield) was and is 2%. What was the (annualized) Sharpe ratio of the stock?
Hint: Use the annualized return and standard deviation. The variance of returns over N weeks is N times the weekly variance. The standard deviation of returns over N weeks is N0.5 times the weekly standard deviation.
\begin{tabular}{|c|c|r|r|l|} \hline & A & B & \multicolumn{1}{|c|}{ C } & D \\ \hline 1 & Week & Stock & S\&P 500 & \\ \hline 2 & 0 & 36.07 & 2,630 & \\ \hline 3 & 1 & 36.71 & 2,572 & \\ \hline 4 & 2 & 39.64 & 2,590 & \\ \hline 5 & 3 & 39.01 & 2,623 & \\ \hline 6 & 4 & 36.73 & 2,676 & \\ \hline 7 & 5 & 39.03 & 2,602 & \\ \hline 8 & 6 & 40.8 & 2,689 & \\ \hline 9 & 7 & 36.01 & 2,628 & \\ \hline 10 & 8 & 36.34 & 2,726 & \\ \hline 11 & 9 & 37.22 & 2,879 & \\ \hline 12 & 10 & 38.39 & 2,842 & \\ \hline 13 & Sum & 415.95 & 29,457 & = SUM(C2:C12) \\ \hline \end{tabular}Step by Step Solution
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