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Please answer in word .doc format or in excel.Thank you 1. You've observed the following returns on Boca Inc's stock over the past ve years:

Please answer in word .doc format or in excel.Thank you

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1. You've observed the following returns on Boca Inc's stock over the past ve years: 7 percent, -13 percent, 21 percent, 34 percent, and 15 percent. What was the arithmetic average return on Crash-nBurn's stock over this ve-year period? What was the variance of Crash-n-Burn's returns over this period? The standard deviation? 2. A stock has had the following year-end prices and dividends: Year Price Dividen d 1 $51.50 - 2 59.32 $.65 3 64.13 3'0 4 57.86 .77 5 65.19 .86 6 74.86 .95 What are the arithmetic and geometric returns for the stock? 3. Based on the following information, calculate the expected return and standard deviation for the two stocks: State of Economy Probability of State of Economy Rate of Return If State Occurs Stock A Stock B Recession .15 .04 . 17 Normal .55 .09 .12 Boom .30 .17 .27 4. Calculate portfolio standard deviation for the following two stock portfolio where: Weight in stock A is 40% std deviation of Stock A is 8.44% std deviation of Stock B is 9.69% covariance between Stock A and Stock B is -0.00796

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