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A portfolio manager is calculating the realized return and the historical volatility of returns for the stock of company VMG. The stock ended the month of June 2021 at a price per share of INR 280, and ended the month of December 2021 at INR 320. The manager reports that the monthly volatility of the stock returns over the 6-month period was 2.76%. Assuming continuous compounding, and that the stock's returns are independent over time, what are the realized return over the 6-month period and the volatility of the stock returns per year?
A
The realized return is 12.5%, and the annual volatility is 9.6%.
B
The realized return is 12.5%, and the annual volatility is 33.1%.
C
The realized return is 26.7%, and the annual volatility is 9.6%.
D
The realized return is 26.7%, and the annual volatility is 33.1%.