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You've collected the following historical rates of return for stocks A and B: Year (t) rA,t rB,t 2016 0.02 0.02 2015 0.08 0.05 2014 0.12

You've collected the following historical rates of return for stocks A and B:

Year (t) rA,t rB,t
2016 0.02 0.02
2015 0.08 0.05
2014 0.12 0.07

Part 1: What was the average annual return for stock A= 0.0733

Part 2: What was the average annual return for stock B?= 0.04667

Part 3: What was the standard deviation of returns for stock A?

Part 4: What was the standard deviation of returns for stock B?

Can you solve Part 3 and 4 using the information given? Part 1 and 2 are already answered.

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