Question: 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

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. Your first year's return was -11.85%.

Year Return
2001 -11.85%
2002 -21.97%
2003 28.36%
2004 10.74%
2005 4.83%
2006 15.61%
2007 5.48%
2008 -36.55%
2009 26.94%
2010 18.00%

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 arithmetic return for the 10-year period?

Q4. What was the standard deviation of returns for the 10-year period?

Q5. What was the variance of returns for the 10-year period.

Q6. If you assumed returns were "normally distributed", what range of returns would you expect for a given year?

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