The Following Is Return Data for a Retail Sector ETF

question 108

Essay

The following is return data for a Retail sector ETF and Energy Sector ETF for the years 2007 through 2011. a.What is the arithmetic mean return for each ETF?
b.What is the geometric mean return for each ETF?
c.What is the sample standard deviation for each ETF? Which ETF was riskier over this time period?
d.Given a risk free rate of 5%.What is the Sharpe Ratio for each ETF?Which investment had a better return per unit of risk over this time period?

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Definitions:

Monsoon

A seasonal reversing wind accompanied by corresponding changes in precipitation, influencing large regions in Asia and Africa's climate.

Decade-Long

a period spanning ten years.

Phases Of Water

The three primary states that water can exist in: solid (ice), liquid, and gas (vapor), each phase determined by temperature and pressure conditions.

Increasing Temperature

Refers to the rise in average temperatures across the Earth, often associated with global warming and climate change.