Please help me answer with clear formula so I can understand it Thank you The table below shows the annual return of ZipZap stock and the S P500 stock index for the period of 2006 2009 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) (Show the formula of the answer) b) An investor has $100,000 at the end of year 2009 He invests $400,000 in ZipZap stock and the rest is invested in the S P500 ETF fund What is the standard deviation of his portfolio c) Following from question b) based on the given information, guess what the return of his portfolio will be in 2010, what is your best guess (Explain your answer)

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Question: Please help me answer with clear formula so I can understand it. Thank you! The table below shows the annual return of ZipZap stock and

Please help me answer with clear formula so I can understand it. Thank you!

The table below shows the annual return of ZipZap stock and the S&P500 stock index for the period of 2006-2009.

	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). (Show the formula of the answer)

b) An investor has $100,000 at the end of year 2009. He invests $400,000 in ZipZap stock and the rest is invested in the S&P500 ETF fund. What is the standard deviation of his portfolio?

c) Following from question b) based on the given information, guess what the return of his portfolio will be in 2010, what is your best guess? (Explain your answer)

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