1. You've observed the following returns on Boca Inc's stock over the past five years: 7 percent, -13 percent, 21 percent, 34 percent, and 15 percent What was the arithmetic average return on Crash-n-Burn's stock over this five-year period? What was the variance of Crash-n-Burn's returns over this period? The standard deviation? 2. A stock has had the following year-end prices and dividends Year Price Dividen 1 $51.50 2 59.32 S.65 3 64.13 .70 4 57.86 .77 5 65.19 86 6 74.86 95 What are the arithmetic and geometric returns for the stock? 3. Based on the following information, calculate the expected return and standard deviation for the two stocks: State of Economy Probability of State of Economy 15 .30 Rate of Return If State Occurs Stock A 04 09 17 Stock B Normal Boom 12 .27 4. Calculate portfolio standard deviation for the following two stock portfolio where Weight in stock A is 40% std deviation of Stock A is 8.44% std deviation of Stock B is 9.69% covariance between Stock A and Stock B is -0.00796