1. (12 marks) (a) Suppose returns are uncorrelated over time. You are given that the volatility over five days is 3.20%. What is the volatility over 60 days? (4 marks) (b) If the one-year arithmetic rate of return for a stock is 20%, what is the geometric rate of return for the same period? (4 marks) (c) The prices of an asset in Week 1 and Week 2 are $1500 and $1570, respectively. If the asset price changes at the same geometric rate of return of Week 2, what would be the asset price in Week 3 ? (4 marks)