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Problem 2 (10 marks). In the past four years, the annual returns of one companys stock are 12%, 18%, and -14%, and 7%. a) Wh

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Answer #1

1.
=((1+12%)*(1+18%)*(1-14%)*(1+7%))^(1/4)-1=5.01360430970368%

2.
=(12%+18%-14%+7%)/4=5.75%

3.
=30%*12%+30%*18%+20%*(-14%)+20%*7%=7.60%

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