Question: Please answer the following questions using the table. Given the historical stock return of the most recent 3 years, answer the following questions. 2018 2019

Please answer the following questions using the table.

  1. Given the historical stock return of the most recent 3 years, answer the following questions.

2018

2019

2020

Return

10%

5%

7%

  1. What is the expected return of this stock? (Hint: Expected return is the average of historical return.)

  1. What is the variance of the historical returns.

What is the measure of risk of the historical returns (Standard Deviation) ?

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