You bought a stock for $25.45, held it for a year, earned a $2.12 dividend...
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You bought a stock for $25.45, held it for a year, earned a $2.12 dividend and sold the stock for $32.88. During that same time period, the S&P 500 generated a 12.6% total return, and the 10-year treasury generated a 1.44% total return. You estimate the volatility of you stock to have been 17.4% compared to the S&P 500 volatility of 13.4% and 10-year treasury volatility of 0.65%. Calculate the Sharpe ratio of your stock.
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