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Question 4 (17 Marks) Consider the following realized annual returns for Stock APP from the year 2010 to 2019: Year End 2010 2011 2012 2013

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Question 4 (17 Marks) Consider the following realized annual returns for Stock APP from the year 2010 to 2019: Year End 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 MAC Stock Realized Return 51.2% 31.5% 91.4% 28.2% 5.2% -2.5% -32% 32.6% -10.4% -16.8% 10 Year a. What is the average annual return of Stock APP from 2010 to 2019? (3 Marks) b. Calculate the variance and standard deviation of Stock APP's return from 2010 to 2019. (9 Marks) c. Suppose that you want to use the 10-years historical average return on Stock APP to forecast the expected future return on Stock APP. What is the standard error of your estimate of the expected return? Find the 95% confidence interval for your estimate of the expect return. (5 Marks) Show all your calculations

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