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  3. 3. xyz stock price and dividend history are as fol

3. XYZ stock price and dividend history are as follows: Year Beginning-of-year Price Dividend paid...

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Finance

3. XYZ stock price and dividend history are as follows:

Year Beginning-of-year Price Dividend paid at Year-End

2010 $100 $4

2011 $110 $2

2012 $90 $3

2013 $95 $1

Compute the arithmetic average rate of return and the geometric average rate of return for the period from the beginning of 2010 to the end of 2012? Your answer should be in percentages and accurate to the hundredths.

4. Use the same information as in Question#3. Suppose that an investor buys three shares of XYZ at the beginning of 2010, buys another two shares at the beginning of 2011, sells one share at the beginning of 2012, and sells all four remaining shares at the beginning of 2013. What is the dollar-weighted rate of return (IRR)? Your answer should be in percentages and accurate to the hundredth.

5. Use the same information as given in Question#3 and compute the standard deviation of stock return.

Your answer should be in percentage points and accurate to the hundredths.

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