Year CAW N- 2 3 4 5 Historical Stock Returns Stock #1 -0.111 0.151 -0.074 0.185 0.114 Stock #2 -0.139 0.189 -0.092 0.231 0.142 Suppose you invest $1,000 in two stocks, as follows: Stock #1 $ 650.00 Stock #2 $ 350.00 Notice that the "weight" of dollars invested in stock #1 is 65.0% Notice that the "weight" of dollars invested in stock #2 is 35.0% At the end of the first year: The $650 earned -11.1%, (so ending value was $577.85) The $350 eamed 13.9%, (so ending value was $301.35) The portfolio value was worth $ 879.20 At the beginning of the second year, you re-arrange your invested dollars so that the weights are the same as they were originally, For instance, you invest ($879.2000) (0.6500) = $571.4800 in stock 1, and and $307.7200 in stock 2. You continue this process for all five years (computing ending values for each stock and the portfolio, then re-balancing, then finding the new values using that year's returns from the chart above). After doing the computations, you have six Ending Values: (You will need to fill in the amounts in the four boxes). Ending Value Year 0 1000 Year 1 879.20000000 Year 2 Year 3 Year 4. Year 5 Please complete the chart (find the remaining ending values). Notice that your portfolio's dollar gain for year I is -$120.80 #1 What is the biggest (most positive) annual dollar gain from years 1-5 A Between 90 and 175 B Between 175 and 200 C Between 200 and 225 D Between 225 and 280 Please compute the annual "Total Relative Return" for each year, For instance, the first return is as shown below: Ending Value Total Return 1000 Year 1 879.200000000 -0.120800000 Year 2 Year 3 Year 4 Year 5 #2 What is the "sample standard deviation of the five total retums? A Between 5.0 and 16.0% B Between 16.0% and 17.596 C Between 17.5% and 19.05 D Between 19.095 and 2205