4. For ABC Stock what is the nominal rate of return? What is the real rate of return? What is the standard deviation of returns? What is the variance of returns? In what year does ABC perform the best based on nominal return? In what year does ABC perform the best based on real return?

ABC Stock

Return Inflation

2001 1.4 0.5

2002 6.6 1.2

2003 4.2 1.1

2004 4.8 1.3

2005 6.2 3.1

2006 5.8 3.3

2007 9.1 3.9

2008 7.5 4.2

2009 4.6 4.6

2010 1.5 4.4

2011 5.2 4.1

Please show how this is solved!