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 year-end prices and dividends of a stock and the annual returns of a risk-free asset:
Year Stock Price Stock Dividend Risk-free rate
0 $20.89--
1 $22.83 $0.622.00%
2 $26.78 $0.722.50%
3 $24.12 $0.841.50%
4 $25.27 $0.981.30%
5 $31.93 $1.252.70%
a) What is the arithmetic average return for the stock? What is the arithmetic average return for the risk-free 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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