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Youve observed the following returns on Hacker Corporations stock over the past five years: -25%, 36%, 9%, 11%, and 17%. Answer the following questions. What

Youve observed the following returns on Hacker Corporations stock over the past five years: -25%, 36%, 9%, 11%, and 17%. Answer the following questions. What is the arithmetic average return on the stock over this five-year period? a. 8.8% b. 9.6% c. 10.7% d. 9.2%What is the variance of returns over this period? a. 0.04878 b. 0.06684 c. 0.05797 d. 0.07432 What is the standard deviation of returns over this period? a. 22.09% b. 24.12% c. 26.89% d. 20.35% Suppose the current T-bill rate is 0.15%. What is the risk premium of owing Hacker Corporation s stock? a. 9.45% b. 8.10% c. 9.75% d. 11.10% What range of returns would you expect to see 95% of the time? a. -12.49% to 31.69% b. 9.6% to 22.09% c. -56.66% to 75.86% d. -34.57% to 53.77% 1 points What is the geometric average return on the stock over this five-year period? a. 9.60% b. 6.35% c. 8.49% d. 7.62% 1 points Save Answer According to the Blume's formula, what is the 2-year average return forecast? a. 7.62% b. 9.11% c. 8.57% d. 9.60%

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