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a. Calculate the average of annual returns of the index. b. Compute the standard deviation of annual returns of the index. c. Compute the lower

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a. Calculate the average of annual returns of the index.

b. Compute the standard deviation of annual returns of the index.

c. Compute the lower bound of the 95% confidence interval of annual returns of the index.

d. Compute the geometric mean of annual returns of the index.

Task Consider the following realized annual returns: Year Stock A Index 2000 23.6% 50.3% 2001 24.7% 27.7% 2002 30.5% 86.9% 2003 9.0% 23.1% 2004 -2.0% 0.2% 2005 -17.3% -3.2% 2006 -24.3% -27.0% 2007 32.2% 27.9% 2008 4.4% -5.1% 2009 7.4% -11.3%

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