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Returns and 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 2002, there was a 2 for 1 stock split

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

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Solution Summary

For each of the final four years, the solution calculates the holding period return, and the annualized return. Standard deviation of returns is also computed.

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