1. Youve observed the following returns on INTC Corporations stock over the past five years: -25%, -16%, -9%, 11%, and 18%. Answer Questions 1 - 6.

   What is the arithmetic average return on the stock over this five-year period?

   a.	-4.2%
   b.	-8.8%
   c.	9.6%
   d.	10.7%

QUESTION 2

1. What is the variance of returns over this period?

   a.	0.06684
   b.	0.07432
   c.	0.04878
   d.	0.03297

QUESTION 3

1. What is the standard deviation of returns over this period?

   a.	20.35%
   b.	16.89%
   c.	18.16%
   d.	22.09%

QUESTION 4

1. Suppose the current T-bill rate is 0.15%. What is the risk premium of owing INTC Corporation's stock?

   a.	-4.35%
   b.	9.45%
   c.	11.10%
   d.	-8.10%

QUESTION 5

1. What range of returns would you expect to see 95% of the time?

   a.	-34.57% to 53.77%
   b.	-40.52% to 32.12%
   c.	-12.49% to 31.69%
   d.	9.6% to 22.09%

QUESTION 6

1. What is the geometric average return on the stock over this five-year period?

   a.	-5.57%
   b.	8.49%
   c.	-9.60%
   d.	7.62%