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You observe an investment that has the following historical returns: Year Return 1 27.66% 2 0.90% 3 21.81% 4 14.17% 5 15.33% 6 9.14% 7
You observe an investment that has the following historical returns: | |||||||||||
Year | Return | ||||||||||
1 | 27.66% | ||||||||||
2 | 0.90% | ||||||||||
3 | 21.81% | ||||||||||
4 | 14.17% | ||||||||||
5 | 15.33% | ||||||||||
6 | 9.14% | ||||||||||
7 | -8.62% | ||||||||||
8 | 12.76% | ||||||||||
9 | 42.87% | ||||||||||
10 | -12.67% | ||||||||||
a. | What was the average (arithmetic mean) return over the 10 year period? | ||||||||||
b. | What was the investment's variance over the 10 year period? |
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