Question: Please answer in word .doc format or in excel.Thank you 1. You've observed the following returns on Boca Inc's stock over the past ve years:

Please answer in word .doc format or in excel.Thank you

Please answer in word .doc format or in excel.Thank you 1. You've

1. You've observed the following returns on Boca Inc's stock over the past ve years: 7 percent, -13 percent, 21 percent, 34 percent, and 15 percent. What was the arithmetic average return on Crash-nBurn's stock over this ve-year period? What was the variance of Crash-n-Burn's returns over this period? The standard deviation? 2. A stock has had the following year-end prices and dividends: Year Price Dividen d 1 $51.50 - 2 59.32 $.65 3 64.13 3'0 4 57.86 .77 5 65.19 .86 6 74.86 .95 What are the arithmetic and geometric returns for the stock? 3. Based on the following information, calculate the expected return and standard deviation for the two stocks: State of Economy Probability of State of Economy Rate of Return If State Occurs Stock A Stock B Recession .15 .04 . 17 Normal .55 .09 .12 Boom .30 .17 .27 4. Calculate portfolio standard deviation for the following two stock portfolio where: Weight in stock A is 40% std deviation of Stock A is 8.44% std deviation of Stock B is 9.69% covariance between Stock A and Stock B is -0.00796

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