Question

You observe an investment that has the following historical returns: Year Return 1 -4.66% 2 0.90%...

You observe an investment that has the following historical returns:

Year Return
1 -4.66%
2 0.90%
3 10.81%
4 14.17%
5 15.33%
6 9.14%
7 -28.62%
8 12.76%
9 42.87%
10 -5.67%

What was the average (arithmetic mean) return over the 10 year period?

What was the investment's variance over the 10 year period?

What was the investment's standard deviation over the 10 year period?

Assuming the 10 years of return are normally distributed and representative of future returns (big, big assumption!), what is the range of future investment returns 68% of the time (roughly 2 out of every 3 years) in the future?

Math   Statistics-And-Probability   
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