Essay
The following table shows the annual returns (in percent) Chevron and Caterpillar for .
(See the Excel Data File.)
A) Which fund had the higher arithmetic average return?
B) Which fund was riskier over this time period?
C) Given a risk-free rate of 1%, which fund has the higher Sharpe ratio? What does this imply?
Correct Answer:

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a) Arithmetic Mean Chevron =AVERAGE()=0....View Answer
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Correct Answer:
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