1. The past five monthly returns for Kohl’s are 3.68 percent, 3.97 percent, −1.82 percent, 9.32 percent, and −2.70 percent. Compute the standard deviation of Kohls’ monthly returns.
2. If you own 400 shares of Xerox at $18.74, 500 shares of Qwest at $9.55, and 300 shares of Liz Claiborne at $46.13, what are the portfolio weights of each stock?
3. If inflation is predicted to be 4% and an investment is available that will yield 7%, how much would you have to save to have the equivalent of $500,000 in today's dollars in 20 years?