Question: Please answer it correctly & with clear formula, thank you! The table below shows the annual return ZipZap stock and the S&P500 stock index for

Please answer it correctly & with clear formula, thank you!

The table below shows the annual return ZipZap stock and the S&P500 stock index for the period of 2019-2022.

Annual Percentage Change

Year

ZipZap

S&P 500

2006

24.1%

15.8%

2007

28.7%

5.5%

2008

-31.8%

-37.0%

2009

2.7%

26.5%

Arithmetic average

5.9%

(a)

Geometric average

(b)

-0.7%

Standard deviation

27.6%

(c)

Correlation coefficient

0.7

a) Calculate the values for cell (a), (b), and (c)
b) An investor has $100,000 at the end of year 2022. He invests $40,000 in ZipZap stock and the rest is invested in the S&P500 ETF fund. What is the standard deviation of his portfolio?

c) based on the given information on question b), if you have to guess what the return of her portfolio will be in 2010, what is your best guess? Explain your answer.

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