On year 2015, you bought BRK at $280/ share.

You have tracked down the price of this stock over the last 6 years.

Year	PPS	DPS
2016	270	3
2017	290	10
2018	295	7
2019	300	12
2020	270	-
2021	320	5

Required

1- Calculate the rate of return per year, its capital gain, and dividend yield.

2- Calculate the arithmetic and geometric averages of this stock. How is it different?

3- How much is the volatility of this stock?

4- Analyze the volatility based on the normal distribution

Answer rating: 100% (QA)

To calculate the rate of return capital gain and dividend yield for each year we can use the following formulas Rate of Return Ending Price Beginning Price Beginning Price Capital Gain Ending Price Be... View the full answer