Using the data shown in the table below, that contains historical monthly prices and dividends (paid at the end of the month) for Ford Motor Company stock (Ticker: F) from August 1994 to August 1998, compute the:

a. Average monthly return over this period.

b. Monthly volatility (or standard deviation) over this period.

1+Rt 0.949 1.072 0.919 1.028 0.915 1.035 1.029 1 Date 2 Aug-94 3 Sep-94 4 Oct-94 5 Nov-94 6 Dec-94 7 Jan-95 8 Feb-95 9 Mar-95 10 Apr-95 11 May-95 12 Jun-95 13 Jul-95 14 Aug-95 15 Sep-95 16 Oct-95 17 Nov-95 18 Dec-95 19 Jan-96 20 Feb-96 21 Mar-96 22 Apr-96 23 May-96 24 Jun-96 25 Jul-96 26 Aug-96 27 Sep-96 28 Oct-96 29 Nov-96 30 Dec-96 31 Jan-97 32 Feb-97 33 Mar-97 34 Apr-97 35 May-97 36 Jun-97 37 Jul-97 38 Aug-97 39 Sep-97 40 Oct-97 41 Nov-97 B C D Stock Price Dividend Return $29.250 $0.000 $27.750 0.000 -5.13% $29.500 S 0.260 7.24% $27.125 $0.000 -8.05% $27.875 $0.000 2.76% $25.250 $0.260 -8.48% S0.000 3.47% $26.875 $0.000 2.87% $27.125 $0.310 2.08% $29.250 $0.000 7.83% $29.750 S0.000 1.71% $29.000 $0.310 -1.48% $30.750 $0.000 6.03% $31.125 $0.000 1.22% $28.750 -6.51% $28.250 $0.000 -1.74% $28.875 $0.000 2.21% $29.500 $0.350 3.38% $31.250 S0.000 5.93% $34.375 $0.000 10.00% $35.875 $0.350 5.38% $36.500 $0.000 1.74% $32.375 0.000 -11.30% $32.375 $0.385 1.19% $33.500 $0.000 3.47% $31.250 $0.000 -6.72% $31.250 $0.385 1.23% $32.750 S0.000 4.80% $32.250 $0.000 - 1.53% $32.125 $0.385 (0.81% $32.875 $0.000 2.33% $31.375 $0.000 -4.56% $34.750 $0.420 12.10% $37.500 $0.000 7.91% $38.000 S0.000 1.33% $40.875 $0.420 8.67% $43.000 $0.000 5.20% $45.125 $0.000 4.94% $43.688 $0.420 -2.25% $43.000 $0.000 -1.57% 1.021 1.078 1.0171 0.985 1.06 1.012 0.935 0.983 1.022 1.034 1.0591 1.1 1.054 1.017 0.887 1.012 1.035 0.933 1.012 1.048 0.985 1.008 1.023 0.954 1.121 1.079 1.013 1.087 1.052 1.049 0.977 0.984 42 Dec-97 43 Jan-98 44 Feb-98 45 Mar-98 46 Apr-98 47 May-98 48 Jun-98 49 Jul-98 50 Aug-98 ($48.563 $51.000 $56.563 $64.813 $45.813 $51.875 $59.000 $57.000 $44.625 $0.000 $0.420 $0.000 $0.000 $23.680 0.000 $0.000 $0.420 $0.000 12.94% 5.88% 10.91% 14.59% 7.22% 13.23% 13.73% -2.68% -21.71% 1.129 1.059 1.109 1.146 1.072 1.1321 1.1371 0.973 0.783) 1+Rt 0.949 1.072 0.919 1.028 0.915 1.035 1.029 1 Date 2 Aug-94 3 Sep-94 4 Oct-94 5 Nov-94 6 Dec-94 7 Jan-95 8 Feb-95 9 Mar-95 10 Apr-95 11 May-95 12 Jun-95 13 Jul-95 14 Aug-95 15 Sep-95 16 Oct-95 17 Nov-95 18 Dec-95 19 Jan-96 20 Feb-96 21 Mar-96 22 Apr-96 23 May-96 24 Jun-96 25 Jul-96 26 Aug-96 27 Sep-96 28 Oct-96 29 Nov-96 30 Dec-96 31 Jan-97 32 Feb-97 33 Mar-97 34 Apr-97 35 May-97 36 Jun-97 37 Jul-97 38 Aug-97 39 Sep-97 40 Oct-97 41 Nov-97 B C D Stock Price Dividend Return $29.250 $0.000 $27.750 0.000 -5.13% $29.500 S 0.260 7.24% $27.125 $0.000 -8.05% $27.875 $0.000 2.76% $25.250 $0.260 -8.48% S0.000 3.47% $26.875 $0.000 2.87% $27.125 $0.310 2.08% $29.250 $0.000 7.83% $29.750 S0.000 1.71% $29.000 $0.310 -1.48% $30.750 $0.000 6.03% $31.125 $0.000 1.22% $28.750 -6.51% $28.250 $0.000 -1.74% $28.875 $0.000 2.21% $29.500 $0.350 3.38% $31.250 S0.000 5.93% $34.375 $0.000 10.00% $35.875 $0.350 5.38% $36.500 $0.000 1.74% $32.375 0.000 -11.30% $32.375 $0.385 1.19% $33.500 $0.000 3.47% $31.250 $0.000 -6.72% $31.250 $0.385 1.23% $32.750 S0.000 4.80% $32.250 $0.000 - 1.53% $32.125 $0.385 (0.81% $32.875 $0.000 2.33% $31.375 $0.000 -4.56% $34.750 $0.420 12.10% $37.500 $0.000 7.91% $38.000 S0.000 1.33% $40.875 $0.420 8.67% $43.000 $0.000 5.20% $45.125 $0.000 4.94% $43.688 $0.420 -2.25% $43.000 $0.000 -1.57% 1.021 1.078 1.0171 0.985 1.06 1.012 0.935 0.983 1.022 1.034 1.0591 1.1 1.054 1.017 0.887 1.012 1.035 0.933 1.012 1.048 0.985 1.008 1.023 0.954 1.121 1.079 1.013 1.087 1.052 1.049 0.977 0.984 42 Dec-97 43 Jan-98 44 Feb-98 45 Mar-98 46 Apr-98 47 May-98 48 Jun-98 49 Jul-98 50 Aug-98 ($48.563 $51.000 $56.563 $64.813 $45.813 $51.875 $59.000 $57.000 $44.625 $0.000 $0.420 $0.000 $0.000 $23.680 0.000 $0.000 $0.420 $0.000 12.94% 5.88% 10.91% 14.59% 7.22% 13.23% 13.73% -2.68% -21.71% 1.129 1.059 1.109 1.146 1.072 1.1321 1.1371 0.973 0.783)