SELECT THE CORRECT OPTION AND SHOW ITS WORKING THROUGH CALCULATION. THANK YOU.

Q1)Use the table for the question(s) below.

Consider the following realized annual returns:

Year End Index Realized Return Stock A Realized Return 2000 23.6% 46.3% 2001 24.7% 26.7% 2002 30.5% 86.9% 2003 9.0% 23.1% 2004 -2.0% 0.2% 2005 -17.3% -3.2% 2006 -24.3% -27.0% 2007 32.2% 27.9% 2008 4.4% -5.1% 2009 7.4% -11.3% The geometric average annual return on Stock A from 2000 to 2009 is closest to: 16.7%. 13.2%. 12.4%. 17.8%.

Q2) Use the table for the question(s) below.

Consider the following realized annual returns:

Year End Index Realized Return Stock A Realized Return 2000 23.6% 46.3% 2001 24.7% 26.7% 2002 30.5% 86.9% 2003 9.0% 23.1% 2004 -2.0% 0.2% 2005 -17.3% -3.2% 2006 -24.3% -27.0% 2007 32.2% 27.9% 2008 4.4% -5.1% 2009 7.4% -11.3% Suppose that you want to use the 10-year historical average return on Stock A to forecast the expected future return on Stock A. The 95% confidence interval for your estimate of the expect return is closest to: -15.0% to 47.9%. 6.5% to 26.3%. -4.5% to 37.4%. 13.2% to 19.5%.