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Questions A fund had the following experience over the past 10 years: Year Return 1 4.5% 2 6.0% 3 1.5% 4 -2.0% 5 0.0% 6

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Questions A fund had the following experience over the past 10 years: Year Return 1 4.5% 2 6.0% 3 1.5% 4 -2.0% 5 0.0% 6 4.5% 7 3.5% 8 2.5% 9 5.5% 10 4.0% 1) Based on the given returns for 10 years, answer the following; (60 pts) . What is the arithmetic mean return? What is the geometric mean return? What is the variance? What is the standard deviation? O . 2) How do you describe a correlation of 0.34 between two variables, X and Y? (20 pts) 3) What are the potential problems with interpreting the correlation coefficient? (20 pts)

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