1. Assume that for a 5-year period, large-company stocks had annual rates of return of 24.04 percent, −9.70 percent, −12.49 percent, −19.10 percent, and 31.89 percent. What is the variance of these returns?

.0542

.0574

.0596

.0508

2. A stock produced annual rates of return of 12.5 percent, −15.5 percent, 17 percent, and 17 percent over the past 4 years, respectively. What is the geometric average return for this period?

6.81 percent

6.93 percent

7.57 percent

7.30 percent