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Question 6 The following table shows the annual returns of the Dow Jones Inc Year Dow Jones Industrial Average 2015 -2.23% 2016 13.42% 2017 25.08% 2018 -5.63% 2019 22.34% 2020 7.25% What is the standard deviation of returns over this six-year period? a. 14.02% b.25.43% c. 22.91% d. 12.59% Moving to anothor question will cun this rornanca Question 7 The following table shows the annual returns of the Dow Jones I Year Dow Jones Industrial Average 2015 -2.23% 2016 13.42% 2017 25.08% 2018 -5.63% 2019 22.34% 2020 7.25% Suppose the current T-bill rate is 0.25%, what is the risk premium of DJIA a. 4.14% b. 3.25% c. 10.23% d. 9.79% Question 8 The following table shows the annual returns of the Dow Jones Year Dow Jones Industrial Average 2015 -2.23% 2016 13.42% 2017 25.08% 2018 -5.63% 2019 22.34% 2020 7.25% What range of returns would you expect to see 95% of the time? a. (-17.40%, 38.59%) b.(-5.09%, 23.49%) c. (-18.84%, 32.04%) d. (-15.15%, 35.22%) Question 9 The following table shows the annual returns of the Dow Jone Year Dow Jones Industrial Average 2015 -2.23% 2016 13.42% 2017 25.08% 2018 -5.63% 2019 22.34% 2020 7.25% What is the geometric average return for the six-year period? a. 8.87% b. 11.31% c. 9.43% d. 10.95% Question 10 The following table shows the annual returns of the Dow Jones Industrial A Year Dow Jones Industrial Average 2015 -2.23% 2016 13.42% 2017 25.08% 2018 -5.63% 2019 22.34% 2020 7.25% According to the Blume's formula, what is the 3-year average return forecast? a. 10.04% b.9.63% c. 9.43% d. 9.80%

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