XYZ stock price and dividend history are as follows:
Year Beginning-of-year Price Dividend paid at Year-End
2010 $100 $10
2011 $90 $10
2012 $95 $5
2013 $105 $5
a) What is the arithmetic average rate of return for the period from the beginning of 2010 to the end of 2012? Note that the end of 2012 is simply the beginning of 2013. (Hint: One of the of the four dividend values will not be used answer the question).
B) compute the geometric average rate of return. Your answer should be in percentages and accurate to the hundredths.
C) compute the standard deviation of the stock's return.
NO EXCEL FUNCTION IS USED. JUST WRITTEN IN EXCEL
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