What is the historical average return? b) What is the variance of the returns on the...

 

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What is the historical average return? b) What is the variance of the returns on the Index from 2000 to 2009? c) What is the standard deviation of the returns on the Index from 2000 to 2009? 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% What is the historical average return? b) What is the variance of the returns on the Index from 2000 to 2009? c) What is the standard deviation of the returns on the Index from 2000 to 2009? 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%

Answer rating: 100% (QA)

Answer a The historical average return for the SP 500 index from 2000 to 2009 is calculated as follows 1 00236 x 1 00247 x 1 00305 x 1 0009 x 1 0002 x 1 00173 x 1 00243 x 1 00322 x 1 00044 1075 So the ... View the full answer