Chapter 10, Problem 9QP

a)

Summary Introduction

To determine: The arithmetic average return

Introduction:

Arithmetic average return refers to the returns that an investment earns in an average year during different periods. Variance refers to the average difference of squared deviations of the actual data from the mean or average. Standard deviation refers to the deviation of the observations from the mean.

b)

Summary Introduction

To determine: The standard deviation and variance

Introduction:

Arithmetic average return refers to the returns that an investment earns in an average year during different periods. Variance refers to the average difference of squared deviations of the actual data from the mean or average. Standard deviation refers to the deviation of the observations from the mean.