• 1. The geometric average of -12%, 20%, and 25% is _________. 2. Your investment has a 20% chance of earning a 30% rate of return, a 50% chance of earning a 10% rate of return, and a 30% chance of losing 6%. What is your expected return on this investment?
• 3. Your investment has a 40% chance of earning a 15% rate of return, a 50% chance of earning a 10% rate of return, and a 10% chance of losing 3%. What is the standard deviation of this investment?

4. You have the following rates of return for a risky portfolio for several recent years: 2008 35.23%

2009 18.67%

2010 -9.87%

2011 23.45%

The annualized (geometric) average return on this investment is _____.

• 5. A security with normally distributed returns has an annual expected return of 18% and standard deviation of 23%. The probability of getting a return between -28% and 64% in any one year is _____.