Question: Calculate expected return and standard deviation for stock A: Year A B C D E 1 9.7% 10.7% 70.3% 13.0% 23.1% 2 1.1% 23.4% -54.0%

Calculate expected return and standard deviation for stock A:

Year

A

B

C

D

E

1

9.7%

10.7%

70.3%

13.0%

23.1%

2

1.1%

23.4%

-54.0%

15.2%

-16.0%

3

-38.9%

-32.1%

40.2%

-40.0%

0.8%

4

34.5%

26.3%

94.5%

57.2%

13.7%

5

14.6%

11.8%

7.3%

-4.2%

41.3%

6

3.7%

1.9%

25.5%

3.9%

5.7%

Expected return equals 7.0%; standard deviation equals 23.1%

Expected return equals 4.1%; standard deviation equals 24.2%

Expected return equals 4.9%; standard deviation equals 19.7%

Expected return equals 9.7%; standard deviation equals 19.7%

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