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

question 130

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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