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Intro You've collected the following historical rates of return for stocks A and B: Year (t) r A,t r B,t 2016 0.02 0.04 2015 0.08

Intro

You've collected the following historical rates of return for stocks A and B:

Year (t) rA,t rB,t
2016 0.02 0.04
2015 0.08 0.05
2014 0.12 0.07

Part 1

What was the average annual return for stock A?

Part 2

What was the average annual return for stock B?

Part 3

What was the standard deviation of returns for stock A?

Part 4

What was the standard deviation of returns for stock B?

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