1. We have the following information for the XYZ stock:

Year Annual Return

2014 10%

2015 -15%

2016 15%

2017 20%

a. Calculate the arithmetic average annual return.

b. Calculate the geometric average annual return.

c. Calculate the standard deviation of the returns.

d. If $1000 is invested in the stock at the start of 2014, how much will it become by year-end 2017?

2.An investor invested $1000 in a mutual fund at the start of 2009. At year-end 2017, this investment grew to $3500. How much is the geometric annual return during this holding period?