# Compute the portfolio's expected return and standard deviation.

1. Consider the following information

1998 1999 2000 2001 2002*

Year end

Stock Price 15.15 17.10 21.00 20.05 11.05

Year end

Dividend 0.15 0.15 0.18 0.18 0.10

* In 2002, there was a 2 for 1 stock split

a. Compute the returns for each of the final four years, the holding period return, and the annualized return.

b. Compute the standard deviation of returns.

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1. Consider the following information

1998 1999 2000 2001 2002*

Year end

Stock Price 15.15 17.10 21.00 20.05 11.05

Year end

Dividend 0.15 0.15 0.18 0.18 0.10

* In ...

#### Solution Summary

The expert computes the portfolio's expected return and standard deviation. The stock price for year end calculations are given.

$2.49