An investor recorded the following annual returns of one of his investments. You are required to calculate and comment on; 1. Mean return. 2. Variance and standard deviation of the return. 3. Geometric return.     Year 2016 2017 2018 2019 2020 Return 15% 17% 19% 10% -5%

As an analyst at an investment bank, you are asked to compare the monthly returns of the two stocks Tesla and Apple Inc during the period of August 2020 to March 2021: Tesla, Xi Aug Sep Oct Nov Dec Jan Feb Mar 0.038 0.199 0.187 -0.069 0.481 0.392 -0.039 -0.150 Apple Inc, y: 0.184 -0.010 0.111 -0.042 0.027 0.052 0.051 -0.106 Σx₁ = 1.039 Σ(x-x)² = 0.3549 Σχ Σy = 0.267 Σ(y: - y)2 = 0.0564

QUESTION 2 The following table contains data on the returns of stock A and stock B from 2021 to 2024: Year 2021 2022 2023 2024 Return on stock A 6 8 10 12 Return on stock B 13 10 14 11 1. Compute the mean return on stock A and the mean return on stock B; 2. Compute the variance of the return on stock A and the variance of the return on stock B; 8. Compute the standard deviation of the return on stock A and the standard deviation of the return on stock B; 4. Compute the coefficient of variation of the return on stock A and stock B; 5. Compute RRC for stock A and stock B (Hint: RRC = Mean Return/Standard Deviation); 6. Would you invest in Stock A or Stock B? Why?

1. Your portfolio had the values in the table below for the four years listed. There were no withdrawals or contributions of new funds to the portfolio. Calculate your average return over the 4-year period. (Click on the icon here contents of the data table below into a spreadsheet.) in order to copy its Beginning Value Ending Value 2016 $60,827 $55,697 2017 55,697 64,666 2018 64,666 68,386 2019 68,386 70,124 Review Only Click the icon to see the Worked Solution. The return for 2016 is %. (Round to one decimal place.) The return for 2017 is %. (Round to one decimal place.) The return for 2018 is %. (Round to one decimal place.) The return for 2019 is %. (Round to one decimal place.) The average return is %. (Round to one decimal place.)

Compute the annual tracking error from the following information: Quarter Portfolio B's 1 2 3 4 O 1.06% O 2.12% O 3.67% O 4.25% O None Portfolio A's Return (%) 1.15 1.89 1.15 -0.47 Return (%) 1.65 -0.10 0.52 -0.60

20) Calculate the geometric average for the following returns: Year 2017 2018 2019 2020 Return 12.03% -8.24% 1.34% 4.55% Group of answer choices 2.2% 2.4% 3.1% 3.4%

Given the following historical returns, calculate the average return and the standard deviation: Year Return 1 14% 2 10% 3 15% 4 11%

Calculate the standard deviation for the following returns: Year 2017 2018 2019 2020 Return 12.03% -8.24% 1.34% 4.55% Group of answer choices 8.4% 8.1% 7.6% 7.3%

Determine the expected standard deviation of a stock that an investment manager has determined that has three possible return outcomes over the next 12 months; -6.45%, 9.85% and 13.05%, for which she has assigned the following probabilities of occurring; 12.5%, 72.5% and 15.0% respectively  5.69%   8.87%   12.74%   0.32%

The Dow Jones Industrial Average had the following annual returns: Year Return 2019 22.3% 2020 7.3% 2021 19% 2022 -8.7% Using just these last 4 years of data, what is the expected return for the Dow Jones? What is the standard deviation of the returns? Please show and explain your work.