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Calculate the sharpe index for each investment and compare

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Reference no: EM133336650

Question: Suppose the five-year annual return for the DIJA is 18% and the average return on T-bills is 7%.

Investment 

Average Annual Return

Standard Deviation

A

14%

0.86

B

12%

0.46

C

10%

0.40
  1. Calculate the Sharpe index for each investment and compare their performance.
  2. Calculate the Treynor Index for each investment and compare their performance.

 

Reference no: EM133336650

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