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Please show me how to do this. I am confused and lost. 1-) Using the data in Exhibit 1, what are the average return and

Please show me how to do this. I am confused and lost.

1-) Using the data in Exhibit 1, what are the average return and standard deviation for Treasury Bills, Treasury Bonds, Corporate Bonds, and Common stocks. Order these items by their risk and return and discuss whether they are in line with your expectations from a risk-return perspective.

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EXHIBIT 1(A): WAL-MART CONSOLIDATED STATEMENTS OF INCOME (for Fiscal years ended January 31) (all amounts in US$ millions except per share data) 2009 2010 401,087 3.287 404,374 304,056 100,318 405,046 3,168 408,214 304,657 103,557 Revenues: Net sales Other income - net Total revenues Cost of goods sold Gross profit Expenses: Operating, selling, and general and administrative expenses Interest expenses - net Total expenses Earnings (income) before taxes and minority interest Income tax Earnings (income) before minority interest Minority interest Earnings from discontinued operations (net of tax) Earnings after tax (net income) 77,520 1,900 79,420 20,898 7,145 13,753 499 146 13,400 79,607 1,884 81.491 22,066 7,139 14,927 513 79 14,335 Average number of shares outstanding (millions) 3,939 3,866 Net income per share $ 3.40 $ 3.71 Source: Adapted from 2010 Wal-Mart Annual Report. EXHIBIT 1(B): WAL-MART CONSOLIDATED BALANCE SHEETS (as of January 31) (all amounts in US$ millions) 2009 2010 7,275 7,907 3,905 4,144 34,511 33,160 3,063 2,980 195 140 48,949 48,331 ASSETS Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses and other Current assets of discontinued operations Total current assets Property, plant and equipment (PPE): Land (property) Plant and equipment (PE) Less: accumulated depreciation Net PPE Net property under capital leases Goodwill Other assets Total assets 19,852 22,591 105,968 115,257 32,964 38,304 92,856 99,544 2,797 2,763 15,260 16,126 3,567 3.942 163.429 170.706 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings Accounts payable Accrued liabilities and income tax Current maturities of long-term debt Obligations under capital leases due within one year Current liabilities of discontinued operations Total current liabilities Long-term debt Long-term obligations under capital leases Deferred income taxes Minority interest Shareholders' equity Total liabilities and equity 1,506 523 28,849 30,451 18,789 20,099 5,848 4,050 315 346 83 92 55,390 55,561 31,349 33,231 3,200 3,170 6,014 5,508 397 307 67,079 72.929 163,429 170.706 Source: Adapted from Wal-Mart 2010 Annual Report EXHIBIT 1(C): WAL-MART CONSOLIDATED STATEMENTS OF CASH FLOW (for fiscal years ended January 31) (all amounts in US$ millions) 2009 2010 Operating activities: Net income (continuing operations) 13,753 14,927 Depreciation and amortization 6,739 7,157 Deferred taxes 581 (504) Net change in operating assets and liabilities 1,305 4,368 Other (net) 769 301 Net cash provided by operating activities 23,147 26,249 Investing activities: Purchases of property, plant and equipment (PPE) (11,499) (12,184) Investment in international operations (1,576) 0 Proceeds from sales and disposals 1,552 1,002 Other investing activities 781 (438) Net cash used in investing activities (10,742) (11,620) Financing activities: Issuance of debt Payments of debt Purchases of stock Dividends Other financing activities Net cash used in financing activities Effect of exchange rate changes 2,821 4,513 (5,387) (6,033) (3,521) (7,276) (3,746) (4,217) (85) (1,178) (9,918) (14,191) (781) 194 Cash: Net increase during year Balance at beginning of year Balance at end of year 1,706 5,569 7.275 632 7,275 7.907 Source: Adapted from 2010 Wal-Mart Annual Report EXHIBIT 1(A): WAL-MART CONSOLIDATED STATEMENTS OF INCOME (for Fiscal years ended January 31) (all amounts in US$ millions except per share data) 2009 2010 401,087 3.287 404,374 304,056 100,318 405,046 3,168 408,214 304,657 103,557 Revenues: Net sales Other income - net Total revenues Cost of goods sold Gross profit Expenses: Operating, selling, and general and administrative expenses Interest expenses - net Total expenses Earnings (income) before taxes and minority interest Income tax Earnings (income) before minority interest Minority interest Earnings from discontinued operations (net of tax) Earnings after tax (net income) 77,520 1,900 79,420 20,898 7,145 13,753 499 146 13,400 79,607 1,884 81.491 22,066 7,139 14,927 513 79 14,335 Average number of shares outstanding (millions) 3,939 3,866 Net income per share $ 3.40 $ 3.71 Source: Adapted from 2010 Wal-Mart Annual Report. EXHIBIT 1(B): WAL-MART CONSOLIDATED BALANCE SHEETS (as of January 31) (all amounts in US$ millions) 2009 2010 7,275 7,907 3,905 4,144 34,511 33,160 3,063 2,980 195 140 48,949 48,331 ASSETS Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses and other Current assets of discontinued operations Total current assets Property, plant and equipment (PPE): Land (property) Plant and equipment (PE) Less: accumulated depreciation Net PPE Net property under capital leases Goodwill Other assets Total assets 19,852 22,591 105,968 115,257 32,964 38,304 92,856 99,544 2,797 2,763 15,260 16,126 3,567 3.942 163.429 170.706 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings Accounts payable Accrued liabilities and income tax Current maturities of long-term debt Obligations under capital leases due within one year Current liabilities of discontinued operations Total current liabilities Long-term debt Long-term obligations under capital leases Deferred income taxes Minority interest Shareholders' equity Total liabilities and equity 1,506 523 28,849 30,451 18,789 20,099 5,848 4,050 315 346 83 92 55,390 55,561 31,349 33,231 3,200 3,170 6,014 5,508 397 307 67,079 72.929 163,429 170.706 Source: Adapted from Wal-Mart 2010 Annual Report EXHIBIT 1(C): WAL-MART CONSOLIDATED STATEMENTS OF CASH FLOW (for fiscal years ended January 31) (all amounts in US$ millions) 2009 2010 Operating activities: Net income (continuing operations) 13,753 14,927 Depreciation and amortization 6,739 7,157 Deferred taxes 581 (504) Net change in operating assets and liabilities 1,305 4,368 Other (net) 769 301 Net cash provided by operating activities 23,147 26,249 Investing activities: Purchases of property, plant and equipment (PPE) (11,499) (12,184) Investment in international operations (1,576) 0 Proceeds from sales and disposals 1,552 1,002 Other investing activities 781 (438) Net cash used in investing activities (10,742) (11,620) Financing activities: Issuance of debt Payments of debt Purchases of stock Dividends Other financing activities Net cash used in financing activities Effect of exchange rate changes 2,821 4,513 (5,387) (6,033) (3,521) (7,276) (3,746) (4,217) (85) (1,178) (9,918) (14,191) (781) 194 Cash: Net increase during year Balance at beginning of year Balance at end of year 1,706 5,569 7.275 632 7,275 7.907 Source: Adapted from 2010 Wal-Mart Annual Report

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