1. Multiple choice questions for Finance

i. Your stock investments return 8%, 12%, and -4% in consecutive years. What is the mean return?

A) 4.33%

B) 5.33%

C) 3.35%

D) 4.35%

E) 4.11%

ii. Your stock investments return 8%, 12%, and -4% in consecutive years. What is the geometric return?

A) 4.33%

B) 5.33%

C) 3.35%

D) 4.35%

E) 5.11%

iii. Your stock investments return 8%, 12%, and -4% in consecutive years. What is the variance?

A)0.0069

B)0.0096

D)0.0036

D)0.0049

E)0.0089

iv. What would be the standard deviation of the returns 8%, 12%, and -4% in consecutive years?

A) 4.33%

B) 5.35%

C) 6.33%

D) 3.65%

E) 8.31%