QUESTION 1 Use the table for the question(s) below. Consider the following realized annual returns: Year End 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Index Realized Return 23.6% 24.7% 30.5% 9.0% -2.0% -17.3% -24.3% 32.2% 4.4% 7.4% Stock A Realized Return 46.3% 26.7% 86.9% 23.1% 0.2% -3.2% -27.0% 27.9% -5.1% -11.3% The variance of the returns on the Index from 2000 to 2009 is closest to: O .0450. O .0375. O .1935. O .3400. QUESTION 2 Use the table for the question(s) below. Consider the following realized annual returns: Year End 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Index Realized Return 23.6% 24.7% 30.5% 9.0% -2.0% -17.3% -24.3% 32.2% 4.4% 7.4% Stock A Realized Return 46.3% 26.7% 86.9% 23.1% 0.2% -3.2% -27.0% 27.9% -5.1% -11.3% The geometric average annual return on Stock A from 2000 to 2009 is closest to: 16.7%. 17.8%. 13.2%. 12.4%. QUESTION 7 Use the table for the question(s) below. Consider the following realized annual returns: Year End 2000 2001 2002 2003 2004 2005 2006 2007 2008 Index Realized Return 23.6% 24.7% 30.5% 9.0% -2.0% -17.3% -24.3% 32.2% 4.4% 7.4% Stock A Realized Return 46.3% 26.7% 86.9% 23.1% 0.2% -3.2% -27.0% 27.9% -5.1% -11.3% 2009 The standard deviation of the returns on Stock A from 2000 to 2009 is closest to: 31.5%. 33.2%. 16.5%. O 11.0%. QUESTION 10 Use the table for the question(s) below. Consider the following realized annual returns: Year End 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Index Realized Return 23.6% 24.7% 30.5% 9.0% -2.0% -17.3% -24.3% 32.2% 4.4% 7.4% Stock A Realized Return 46.3% 26.7% 86.9% 23.1% 0.2% -3.2% -27.0% 27.9% -5.1% -11.3% The covariance and correlation of the index return and stock A return from 2000 to 2009 are closest to: O Covariance: 0.022;Correlation: 0.092 Covariance: 0.247 O Covariance: 0.021;Correlation: 0.051;Correlation: 0.052;Correlation: 0.348 O Covariance: 0.803