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Use the following case to answer Question 1-4: In the first week of your job...

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Use the following case to answer Question 1-4: In the first week of your job at Credit Suisse as an analyst, you were given the following partial data to evaluate you for which desk/supervisor they should assign you to: Months Oct Sept Aug July June May April Mar Feb Adjusted closing price Stock A $102 106 105 104 100 97 94 92 90 Adjusted closing price Stock B $23 24 22 20 18 16 17 15 14 Adjusted closing price Stock C $30 33 34 35 36 37 39 40 38 Adjusted closing price Stock D $52 54 51 53 52 50 49 47 45 Assume a risk-free rate of 1%. Q1. The annualized rate of return of stock B is Q2. The annualized volatility (std dev) of stock D is Q3. Among these four stocks, which stock has the best Sharpe Ratio and with what value? My answer: Stock ......... with a Sharpe ratio of ..... Q4. You will be managing a portfolio of $1,000,000. What is the Sharpe ratio of a portfolio if you allocate $200,000 to A: $150,000 to B; and the rest allocated equally between C and D. The Sharpe Ratio of this portfolio is

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