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?

Question

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?

Quizplus · Accepted Answer

The Answer of 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?

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