Question: This table lists the year - end prices and dividends of a stock and the annual returns of a risk - free asset: Year Stock
This table lists the yearend prices and dividends of a stock and the annual returns of a riskfree asset:
Year Stock Price Stock Dividend Riskfree rate
$
$ $
$ $
$ $
$ $
$ $
a What is the arithmetic average return for the stock? What is the arithmetic average return for the riskfree asset?
b What is the risk premium of this stock?
c What are the variance and standard deviation of this stock?
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