1. A stock had returns of 19 percent, 18 percent, 17 percent, 8 percent, 16 percent, and -1 percent over the last six years.
2. What is the arithmetic return for the stock?
3. What is the geometric return for the stock?

Question 2

Recession: Prob State of Economy: 0.20 -- Stock A: 0.06 -- Stock B: -0.23

Boom: Prob State of Economy: 0.20 -- Stock A: 0.13 -- Stock B: 0.31

Normal: Prob State of Economy: 0.60 -- Stock A: 0.07 -- Stock B: 0.13

Calculate the expected return for Stock A.

Calculate the expected return for Stock B.

Calculate the standard deviation for Stock A.

Calculate the standard deviation for Stock B.