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QUESTION 10 Sarah is looking at her prospects of selling her investment the made 5 years ago, below is the details of her average return

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QUESTION 10 Sarah is looking at her prospects of selling her investment the made 5 years ago, below is the details of her average return for the last 5 years Annual Rate of Return Year O 1 2 3 8% 9% 7% -10% 6% 4 5 a) Calculate the Arithmetic Average. b) Calculate the Geometric Average. Sara Also holds stocks of XYZ Corp. and wants to find out the Risk and return with the following details below: Rate of Return B D E Probability 20% 0.2 10% 0.3 0.1 -2% 0.2 -8% 0.2 c) Calculate the expected return of XYZ Corp. for Sara. d) Calculate the Standard Deviation of XYZ Corp

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