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Sample Expected Return and Time-Weighted Return Suppose 5-year returns from a fund are as follows: Year Returns 2012 8.90% 2013 10.40% 2014 -1.50% 2015 28.70%

  1. Sample Expected Return and Time-Weighted Return

Suppose 5-year returns from a fund are as follows:

Year

Returns

2012

8.90%

2013

10.40%

2014

-1.50%

2015

28.70%

2016

25.60%

  1. What is the expected return for year 2017?
  2. If you invest $10,000 in the fund beginning in 2012, how much would you have by the end of 2016?
  3. What is the standard deviation of returns?

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