2)

The table below shows historical annual returns for stocks of companies X and Y over recent years. Calculate the arithmetic average returns. In addition, calculate their historical variances, as well as their historical standard deviations.

	Returns
Year	X	Y
1	10 %	22 %
2	28	43
3	17	-8
4	-18	-22
5	19	51

Requirement 1:
(a)	The arithmetic average return of company X's stock is:
	(Click to select) 13.66% 12.66% 9.07% 14.00% 11.20%

(b)	The arithmetic average return of company Y's stock is:
	(Click to select) 13.93% 19.44% 20.98% 21.50% 17.20%

Requirement 2:
(a)	The historical variance of company X's stock returns is: (Do not round intermediate calculations.)
	(Click to select) 0.024924 0.038181 0.030545 0.038462 0.030770

(b)	The historical variance of company Y's stock returns is: (Do not round intermediate calculations.)
	(Click to select) 0.081057 0.094039 0.100070 0.125088 0.117549

Requirement 3:
(a)	The historical standard deviation of company X's stock returns is: (Do not round intermediate calculations.)
	(Click to select) 21.93% 17.38% 19.54% 14.21% 17.54%

(b)	The historical standard deviation of company Y's stock returns is: (Do not round intermediate calculations.)
	(Click to select) 25.62% 31.63% 34.29% 39.54% 30.67%