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23. Assume you want to forecast the Index's expected future return using the Index's 10-year historical average return. Exhibit 1 Year End Stock A Realised

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23. Assume you want to forecast the Index's expected future return using the Index's 10-year historical average return. Exhibit 1 Year End Stock A Realised Return 2010 -8.8% 2011 13.9% 2012 -0.5% 2013 14.0% 2014 -18.0% 2015 4.2% 2016 17.2% 2017 17.5% 2018 -2.3% 2019 -10.6% Required: a) From 2010 through 2019, calculate Stock A's average annual return. (4 marks) b) From 2010 through 2019, calculate Stock A's standard deviation of the returns. (4 marks) c) Assume you wish to anticipate the expected future return on Stock A using the 10-year historical average return. Calculate the 95% confidence interval for your expected return estimate. (Both lower and upper bounds) (5 marks) Round your answers to 2 decimal places. Total marks for the question - 13 marks

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