Question: Project #1 FIN Due: Build a spreadsheet to answer the following questions. Use a separate worksheet for each of the 2 questions Calculate the arithmetic

 Project #1 FIN Due: Build a spreadsheet to answer the following

Project #1 FIN Due: Build a spreadsheet to answer the following questions. Use a separate worksheet for each of the 2 questions Calculate the arithmetic return, the geometric return, and the standard deviation for the following securities. 1. Year 0.2 0.3 0.1 0.5 0.2 0.3 0.2 0.5 0.2 0.3 0.2 0.2 0.4 0.3 0.4 0.1 0.2 0.4 0.3 0.3 0.2 0.2 0.5 0.3 0.3 0.2 0.2 0.3 8 0.2 0 0.3 10 0.4 2. Calculate the probability-weighted return and standard deviation for each of the stocks below. State of the Econom Recession Below Average Average Above Average Boom Probabilit .10 20 .40 .20 .10 Return for Stock A 20% 15% 12% 2% -10% Return for Stock B -30% 0% 10% 15% 25% Return for Stock C -40% -10% 15% 30% 45%

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