Q 8.17. The following table contains the closing year- end prices of the Japanese stock market index, the Nikkei-225. Assume that each historical rate of return was exactly one representative scenario (independent sample draw) that you can use to estimate the future. If a Japanese investor had purchased a mutual fund that imitated the Nikkei-225, what would her annual rates of return, compounded rate of return (from the end of 1984 to the end of 2010), average rate of return, and risk have been?

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N-225 Year Year N-225 Year 1984 11,474 1993 1985 13,011 1994 1986 18,821 1995 19,868 1987 22,957 1996 19,361 N-225 17,417 2002 8,579 19,723 2003 10,677 2004 11,489 2005 16,111 2006 17,225 1988 29,698 1989 38,916 1997 15,259 1998 13,842 2007 15,308 2008 8,860 1990 24,120 1999 18,934 1991 22,984 2000 13,786 1992 16,925 2009 10,546 2001 10,335 2010 10,229