1.) The last four years of returns for a stock are as follows:

Year	1	2	3	4
Return	3.9%	28.4%	12.4%	3.7%

a. What is the average annual return?

b. What is the variance of the stock's returns?

c. What is the standard deviation of the stock's returns?

2.)

Calculate the 95% prediction intervals for the four different investments included in the following table.

	Small Stocks	S&P 500	Corporate Bonds	T-Bills
Average Return	18.78%	12.55%	6.46%	4.16%
Standard Deviation of returns	39.05%	20.83%	7.83%	3.89%

The 95% prediction interval of small stocks is between _____% and ____%