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

question 65

Essay

The following table shows the annual returns (in percent)Chevron and Caterpillar for 2007-2010. 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?

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Definitions:

Group Size

The number of individuals forming a social or organizational unit, which can influence dynamics, communication, and effectiveness.

Social Facilitation Theory

The hypothesis that the presence of others can enhance an individual's performance on simple tasks but may impair performance on complex tasks.

Task Performance

Task performance involves the execution of duties or responsibilities effectively and efficiently, often assessed in professional and academic contexts.

Low Self-Esteem

characterizes a condition where an individual holds a persistently negative view of themselves, often feeling unworthy, inadequate, or valued less than others.