The following table lists the stock prices for Microsoft from 1989 to 1998. The company did not pay any dividends during the period

Year     Price (dollars)

1989 .......... 1.20

1990 .......... 2.09

1991 .......... 4.64

1992 .......... 5.34

1993 .......... 5.05

1994 .......... 7.64

1995 .......... 10.97

1996 .......... 20.66

1997 .......... 32.31

1998 .......... 69.34

a. Estimate the average annual return you would have made on your investment.

b. Estimate the standard deviation and variance in annual returns.

c. If you were investing in Microsoft today, would you expect the historical standard deviations and variances to continue to hold? Why or why not?