1. What is the average annual (historic) return on the hedge fund? Remember the reported returns are monthly. Multiply by 12 to get annual returns.¹Round to three decimals.
2. What is the average annual (historic) return on the stock market? Remember the reported returns are monthly. Round to three decimals.
3. What is the average annual (historic) return on the risk-free asset? Remember the reported returns are monthly. Round to three decimals.
4. What is the annualized standard deviation of the hedge fund return? Remember, you have been given monthly, not annual, returns, but I am asking for the annual standard deviation. You should use the Excel function STDEV.S( ).
5. What is the annualized standard deviation of the stock market return?
6. What is the annualized standard deviation of the risk-free return?