Question: Question 1A: Year 1 2 3 4 Return (%) -3.5 27.7 11.7 4.3 The last four years of returns for a stock are as shown

Question 1A:

Year 1 2 3 4
Return (%) -3.5 27.7 11.7 4.3

The last four years of returns for a stock are as shown here:

a. What is the average annual return?

b. What is the variance of the stock's returns?

c. What is the standard deviation of the stock's returns?

Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format.

a. What is the average annual return?

The average return is %. (Round to two decimal places.)

b. What is the variance of the stock's returns?

The variance of the returns is. (Round to five decimal places.)

c. What is the standard deviation of the stock's returns?

The standard deviation is %. (Round to two decimal places.)

Question 1B:

Date SBUX Dividend GOOG Dividend
16-Nov-2017 $57.24 $0.00 $1048.47 $0.00
07-Feb-2018 $54.46 $0.30 $1055.41 $0.00
09-May-2018 $57.04 $0.30 $1089.00 $0.00
08-Aug-2018 $51.55 $0.36 $1261.33 $0.00
14-Nov-2018 $67.04 $0.36 $1054.58 $0.00

Use the data for Starbucks (SBUX) and Google (GOOG) to answer the following questions:

a. What is the return for SBUX over the period without including its dividends? With the dividends?

The return without the dividends is %. (Round to three decimal places.)

With the dividends?

b. What is the return for GOOG over the period?

The return is %. (Round to three decimal places.)

c. If you have 67% of your portfolio in SBUX and 33% in GOOG, what was the return on your portfolio excluding dividends?

The return of the portfolio is %. (Round to three decimal places.)

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