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Use the following 5-year sample on annual returns on S&P500 index and XYZ to calculate XYZ's...

Use the following 5-year sample on annual returns on S&P500 index and XYZ to calculate XYZ's Coecient of Variation, Sharpe ratio, and Beta. The yield-to-maturity on one-year T-Bills is 2%.

Year S&P500 XYZ
2014 0.01 0.02
2015 0.06 0.11
2016 0.02 0.05
2017 0.005 -0.01
2018 0.01 0.02

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Expert Solution

ANSWER IN THE IMAGE. FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE.

in the image:

A= S&P 500

B= XYZ.

Ans: CV= 1.20, SR= 0.40, Beta= 1.96

jeff jeffy answered 2 years ago
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