**Dataset for problem can be found in the comments (can copy and paste into Excel, please show formulas***

[answerhappygod]

**Dataset for problem can be found in the comments (can copy and
paste into Excel, please show formulas***

Dataset For Problem Can Be Found In The Comments Can Copy And Paste Into Excel Please Show Formulas 1 (77.14 KiB) Viewed 46 times

Download, from Blackboard Learn data given in the 1st tab named “Assignment_1_1.xlsx”. It contains the monthly return for VTI (an Exchange Traded Fund that tracks the U.S equity market) and the CPI index (taken from bls.gov; Series ID: CUUR0000SA) for the 60-month (5 years) period ending 12/31/15. Compute monthly inflation using CPI index will be Do the following for VTI. a) 60-month holding period return b) Geometric average monthly return given the 60-month holding period return computed above c) Geometric average annual return given the 60-month holding period return computed above d) Simple average of the monthly return over the 60-month period e) How does the simple average monthly return compare with the geometric average monthly return? Is the difference between two numbers consistent with what you expect? f) If you expect history to repeat itself, what is your best estimate of the forecast of expected monthly return? g) Standard deviation of monthly return over the 60-month period h) If you expect history to repeat itself, what is the best estimate of the forecast of the standard deviation of monthly returns? i) Excess return for each month j) Risk premium over the 60-month period k) Standard deviation of monthly excess return over the 60-month period 1) Sharpe ratio m) Sharpe ratio using the standard deviation of return (instead of using standard deviation of excess return) in the denominator. Why is it different from the Sharpe ratio computed above? n) Inflation rate for each month. Use the CPI index in adjacent month to compute the inflation rate. 0) Real return for VTI each month