Question: Using the data shown in the table here, Date Stock Price Dividend Return 1+Rt Aug-94 $29.250 $0.000 Sep-94 $27.750 $0.000 -5.13% 0.949 Oct-94 $29.500 $0.260

Using the data shown in the table here,

Date Stock Price Dividend Return 1+Rt Aug-94 $29.250 $0.000 Sep-94 $27.750 $0.000 -5.13% 0.949 Oct-94 $29.500 $0.260 7.24% 1.072 Nov-94 $27.125 $0.000 -8.05% 0.919 Dec-94 $27.875 $0.000 2.76% 1.028 Jan-95 $25.250 $0.260 -8.48% 0.915 Feb-95 $26.125 $0.000 3.47% 1.035 Mar-95 $26.875 $0.000 2.87% 1.029 Apr-95 $27.125 $0.310 2.08% 1.021 May-95 $29.250 $0.000 7.83% 1.078 Jun-95 $29.750 $0.000 1.71% 1.017 Jul-95 $29.000 $0.310 -1.48% 0.985 Aug-95 $30.750 $0.000 6.03% 1.060 Sep-95 $31.125 $0.000 1.22% 1.012 Oct-95 $28.750 $0.350 -6.51% 0.935 Nov-95 $28.250 $0.000 -1.74% 0.983 Dec-95 $28.875 $0.000 2.21% 1.022 Jan-96 $29.500 $0.350 3.38% 1.034 Feb-96 $31.250 $0.000 5.93% 1.059 Mar-96 $34.375 $0.000 10.00% 1.100 Apr-96 $35.875 $0.350 5.38% 1.054 May-96 $36.500 $0.000 1.74% 1.017 Jun-96 $32.375 $0.000 -11.30% 0.887 Jul-96 $32.375 $0.385 1.19% 1.012 Aug-96 $33.500 $0.000 3.47% 1.035 Sep-96 $31.250 $0.000 -6.72% 0.933 Oct-96 $31.250 $0.385 1.23% 1.012 Nov-96 $32.750 $0.000 4.80% 1.048 Dec-96 $32.250 $0.000 -1.53% 0.985 Jan-97 $32.125 $0.385 0.81% 1.008 Feb-97 $32.875 $0.000 2.33% 1.023 Mar-97 $31.375 $0.000 -4.56% 0.954 Apr-97 $34.750 $0.420 12.10% 1.121 May-97 $37.500 $0.000 7.91% 1.079 Jun-97 $38.000 $0.000 1.33% 1.013 Jul-97 $40.875 $0.420 8.67% 1.087 Aug-97 $43.000 $0.000 5.20% 1.052 Sep-97 $45.125 $0.000 4.94% 1.049 Oct-97 $43.688 $0.420 -2.25% 0.977 Nov-97 $43.000 $0.000 -1.57% 0.984 Dec-97 $48.563 $0.000 12.94% 1.129 Jan-98 $51.000 $0.420 5.88% 1.059 Feb-98 $56.563 $0.000 10.91% 1.109 Mar-98 $64.813 $0.000 14.59% 1.146 Apr-98 $45.813 $23.680 7.22% 1.072 May-98 $51.875 $0.000 13.23% 1.132 Jun-98 $59.000 $0.000 13.73% 1.137 Jul-98 $57.000 $0.420 -2.68% 0.973 Aug-98 $44.625 $0.000 -21.71% 0.783

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. Question content area bottom Part 1 a. Average monthly return over this period. The average monthly return is

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