Use this info for the next three questions.

Consider these historical annual returns for the SPSM small$-$cap ETF. $[$Google it as needed$).$

Helpful hint: You can copy the below data directly into Excel. This is another problem in support of FSB$\text{'}$s mandate to make all students facile with Excel. Since

the Excel skillset cannot be tested on Canvas exams, in Fin $301$ we support building$/$testing Excel skils in HW assignments.

Question $4$

What is the average return? Compute your answer to three decimal places.

Question $5$

What is the standard deviation of the returns? $[$Hint$,$ use Excel's sample stdev formula, nat its papulation farmula$].$

Compute your answer to three decimal places.

Question $6$

Assume you've mode a relative$-$frequency distribution graph of the above returns, which you believe enables this data to be approximated with $($madeled byl a

Narmal Density function. To use th$$ Normal Density function to model future SPSM returns, which big assumption is moat important?

B$)$ SPSM future retume, wier the long haul, will look like its historical returns.

C$)$ World pocec wit not be dectared anytime soon.

D$)$ Inflation we be contained during the forecast window.

A$)$ There wit be no periods of reccssion in the forecasting Window.