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These are the yearly returns for stocks. Year Return 1 2 3.60% 14.54% 19.15% -15.03% -26.95% 38.46% 24.20% -7.80% 6.41% 18.69% 6 7 8 9

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These are the yearly returns for stocks. Year Return 1 2 3.60% 14.54% 19.15% -15.03% -26.95% 38.46% 24.20% -7.80% 6.41% 18.69% 6 7 8 9 10 Q16: What was the geometric return for this time frame? That is, how much did you earn per year, compounded annually? Select one: a. 1.0% to 2.0% b. 5.0% to 6.0% c. 6.0% to 7.0% d. Less than 0% e. 0% to 1.0% f. 2.0% to 3.0% g. 7.0% tio 8.0% h. 4.0% to 5.0% i. 3.0% to 4.0% j. More than 8.0% Q17: The arithmetic return for the 10-year period was: Select one: a. 5.0% to 6.0% b. More than 9.0% c. 3.0% to 4.0% d. 1.0% to 2.0% e. Less than 0% f. 4.0% to 5.0% g. 6.0% to 7.0% h. 2.0% to 3.0% i. 0% to 1.0% j. 7.0% to 8.0% Q18: What was the Standard Deviation of Returns for the 10-year period? Select one: a. 10.0% to 15.0% b. 20.0% to 25.0% c. 15.0% to 20.0% d. More than 25.0% e. 5.0% to 10.0% f. 0% to 5.0% Q19: Assume that returns follow a normal distribution [i.e., a "bell shaped curve"]. What range of returns would you expect 68% of the time? Select one: a. Years 4-8 b. -10% to 20% c. -7% to 15% d. Years 3-7 e. Years 2-6 f. -20% to 35% g. 0% to 10% h. -32% to 47%

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