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Problem #2: The following table shows realized rates of return for two stocks during a six year sample period. A B C 1 Year Stock

Problem #2: The following table shows realized rates of return for two stocks during a six year sample period.

A B C
1 Year Stock A Stock B
2 1 5% 15%
3 2 -22% -14%
4 3 -6% -5%
5 4 5% 28%
6 5 14% 8%
7 6 20% 3%

Part 1) What is the arithmetic average return for stock B?

Part 2) What is the variance for stock B? (Hint: variance formula in Excel starts with var)

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