The following table shows the annual returns (in percent)Chevron and Caterpillar for 2007-2010. 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?

Question

The following table shows the annual returns (in percent)Chevron and Caterpillar for 2007-2010.  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?

Quizplus · Accepted Answer

The Answer of The following table shows the annual returns (in percent)Chevron and Caterpillar for 2007-2010.  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?

The Following Table Shows the Annual Returns (In Percent)Chevron and Caterpillar