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1.What is the expected rate of return for stock A and stock B. 2.Calculate...

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1.What is the expected rate of return for stock A and stock B.

2.Calculate the standard deviation of the returns for stock A and stock B.

3.Calculate the Sharpe Ratio for stock A and stock B. Assume the risk-free rate is equal to 1.5%.

4.What will be the value of $100 by the end of 2021 if invested in stock A at the beginning of 2018?

5.What will be the value of $100 by the end of 2021 if invested in stock B at the beginning of 2018?

Problem 3 (14 pts) Consider the rate of return on Stock A and Stock B below: Year 2018 2019 2020 2021 f 20 % 15 % - 2% 11 % f - 21% - 18% 7% 8%

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