AVERAGE ANNUAL RETURNS, ARITHMETIC AVERAGES & STANDARD DEVIATIONS

Here are the total returns for the S&P500 for the first ten years of this century. Assume you invested $1 in the S&P500 on January 1, 2001.

In the first year, you lost 11.85% of your money.

Year	Return
2001	-11.85%
2002	-23.97%
2003	28.36%
2004	10.74%
2005	4.83%
2006	15.61%
2007	8.48%
2008	-36.55%
2009	23.94%
2010	21.00%

Q1. If you invested $1 at the beginning of the time frame [1/1/2001], how much would it be worth five years later? Show work and calculations.

Q2. If you invested $1 at the beginning of the time frame [1/1/2001], how much would it be worth ten years later? Show work and calculations.

Q3: What was the 10-year geometric annual return [Fidelity uses "average annual return"].

Q4. What was the arithmetic return for the 10-year period?

Q5. What was the standard deviation of returns for the 10-year period?

Q6. What was the variance of returns for the 10-year period?

Q7. If you assumed returns were "normally distributed", what range of returns would you expect 68% of the time for a given year?