1. What is the average annual (historic) return on the hedge fund? Report your answers as percentand the date is in months.
2. What is the average annual (historic) return on the Stock Market?
3. What is the average annual (historic) return on the Risk-free asset?
4. Risk - hedge fund: What is the annualized standard deviation of the Hedge Fund?
5. Risk What is the annualized standard deviation of the Stock market?
6. Risk -What is the annualized standard deviation of the Risk free asset?
7. If investors like expected return and dislike risk, if standard deviation of return was the correct measure of risk, which of the three assets would you expect investors to choose?