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  3. problem #1 (7 marks) consider the following histor

Problem #1 (7 Marks) Consider the following historical returns on CCR Inc. shares. Assume the...

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Problem #1 (7 Marks) Consider the following historical returns on CCR Inc. shares. Assume the average risk-free rate during the 2016-2020 period was equal to 1.5%. Year CCR Return 2020 6% 2019 8% 2018 10% 2017 25% 2016 -8% a) Calculate the arithmetic average return and the risk premium for CCR. (2 marks) b) Calculate the geometric average return for CCR. (2 marks) c) Calculate the standard deviation for CCR using the arithmetic average return

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