Using the data in the table:

a. What was the average annual return of Microsoft stock from 2005-2017?

b. What was the annual volatility for Microsoft stock from 2005-2017?

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Part 1

a. What was the average annual return of Microsoft stock from 2005-2017?

The average annual return is __________________________________enter your response here%. (Round to two decimal places.)

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Data table

Realized Return for the S&P 500, Microsoft, and Treasury Bills, 2005-2017
Year End	S&P 500 Index	Dividends Paid*	S&P 500 Realized Return	Microsoft Realized Return	1-Month T-Bill Return
2004	1211.92
2005	1248.29	23.15	4.90%		0.90%		3.00%
2006	1418.30	27.16	15.80%		15.80%		4.80%
2007	1468.36	27.86	5.50%		20.80%		4.70%
2008	903.25	21.85	37.00%		44.40%		1.50%
2009	1115.10	27.19	26.50%		60.50%		0.10%
2010	1257.64	25.44	15.10%		6.50%		0.10%
2011	1257.61	26.59	2.10%		4.50%		0.00%
2012	1426.19	32.67	16.00%		5.80%		0.10%
2013	1848.36	39.75	32.40%		44.30%		0.00%
2014	2058.90	42.47	13.70%		27.60%		0.00%
2015	2043.94	43.45	1.40%		22.70%		0.00%
2016	2238.83	49.56	12.00%		15.10%		0.20%
2017	2673.61	53.99	21.80%		40.70%		0.80%
*Total dividends paid by the 500 stocks in the portfolio, based on the number of shares of each stock in the index, adjusted until the end of the year, assuming they were reinvested when paid.

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