1. In January 2, 2008 the Dow closed at 13,043.96 points. In October 8 of the same year it closed 9,258.10. What was the return of the market in that period of time?
2. In September of 1984, Apple’s stock was trading at $3.36. In September of 2012 it was trading at $700.26. What is the return for an investor who bought the stock in 1984?
3. In February of 2008, AIG’s stock was trading at $937.20. In February 2009, the price was $8.40. What was the return for an investor who bought the stock in 2008?
4. Use Sharpe ratio to choose the investment that is better compensating investors for the risk they are taking. The risk free rate is 2%. Stock Expected return Standard Deviation X 7% 5% Y 10% 10% Z 15% 11%