Use data downloaded from StockTrak to calculate the following for the last 2 years and assume a risk-free interest rate of zero (almost true prior to 2023):
What is the Sharpe Ratio of the Apple, using daily data for the last 2 years?
What is the Sharpe Ratio of GS (Goldman Sacks), using daily data for the last 2 years?
What is the Sharpe Ratio of BAC (Bank of America), using Annual data for the last 2 years?
For an investor with a risk aversion coefficient of 3 and utility function as described on slide 8 from chapter 6 slides, which company is the best investment?
For an investor with a risk aversion coefficient of 9 and utility function as described on slide 8 from chapter 6 slides, which company is the best investment?
What risk aversion coefficient willl lead an investor to choose the maximal Sharpe ratio investment?Use data downloaded from StockTrak to calculate the following for the last 2 years and assume a risk-free interest rate of zero (almost true prior to 2023):
What is the Sharpe Ratio of the Apple, using daily data for the last 2 years?
What is the Sharpe Ratio of GS (Goldman Sacks), using daily data for the last 2 years?
What is the Sharpe Ratio of BAC (Bank of America), using Annual data for the last 2 years?
For an investor with a risk aversion coefficient of 3 and utility function as described on slide 8 from chapter 6 slides, which company is the best investment?
For an investor with a risk aversion coefficient of 9 and utility function as described on slide 8 from chapter 6 slides, which company is the best investment?
What risk aversion coefficient willl lead an investor to choose the maximal Sharpe ratio investment?
