1. Hacker Corporation's stock produced returns of 15%, 26%, 7%, -13%, and 11% last five years. What is the arithmetic average return and the standard deviation of the stock's returns for the period?
2. Following Question 1, suppose the current T-bill rate is 0.2%. What is the risk premium of owing Hacker Corporation's stock?
3. Following Question 1, what range of returns would you expect to see 68% of the time?
4. Following Question 1, what is the geometric average return?