The Following Is Summary Measures for Google and Apple for 2005-2010

question 43

Essay

The following is summary measures for Google and Apple for 2005-2010. 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:

Sales

The total amount of revenue generated by the selling of goods or services.

Merchandise

Goods to be bought and sold in any type of business.

Operating Expenses

The costs associated with running a business’s core activities on a day-to-day basis, including selling, administrative, and other expenses.

Cash Collections

The process or amount of collecting received payments from customers, typically for goods sold or services rendered.