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10. The annual returns on the stock of a firm during the last five years are provided below. Year Return 12345 0.08 (or 8%)

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10. The annual returns on the stock of a firm during the last five years are provided below. Year Return 12345 0.08 (or 8%) 0.10 (or 10%) 0.15 (or 15%) 0.20 (or 20%) -0.10 (or -10%) a) Find the holding period return of the stock over the five-year period. b) Compute the arithmetic average return of the stock over the five-year period. c) Calculate the geometric average return of the stock over the five-year period. d) Calculate the variance and standard deviation of the returns during this five-year period. Use the arithmetic average return in (b) for your calculations in (d). Use at least 5 decimal places for the variance computation to avoid rounding errors.

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