a) What are the arithmetic and geometric average annual returns on this stock over this four year period?

b) What is the annual variance and standard deviation of returns of this stock over this four year period?

c) Suppose that there was a risk free asset over these four years that returned 2% annually. If you formed a portfolio with weights of 0.5 on Microgen and 0.5 on the risk free asset, what would be the annual return and standard deviation of returns of this new portfolio over the four years?

1. Microgen had the following returns over the last four years. Year 2000 2001 2002 2003 Annual return -10% 15% -4% 23%