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Calculate the Sharpe ratio of your active fund and the index fund. Compare the ratios and provide an interpretation in no more than four sentences.

FINANCIAL ECONOMICS 1. Download the data from Canvas and calculate the (arithmetic) average excess returns for the five risky portfolios during the period 1/1927-12/1963. 2. Calculate the betas of the five portfolios during 1/1927-12/1963. Use the SLOPE func- tion in Excel that computes the slope coefficient βi of a linear regression Ri − Rf = […]

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