Calculating Returns and Variability You have observed the following prices for British Autos, the luxury car maker for a number of years. Jan 2009: €26.87; Jan 2010: €35.19; Jan 2011: €32.17; Jan 2012: €37.23; Jan 2013: €46.84; Jan 2014: €36.80; Jan 2015: €18.61; Jan 2016: €30.96; Jan 2017: €56.08; Jan 2018: €65.39. The company paid the following dividends: 2009: €0.52; 2010:

€0.58; 2011: €0.62; 2012: €0.64; 2013: €0.70; 2014: Nil;

2015: €0.30; 2016: €0.30; 2017: Nil.

(a) What was the arithmetic average return on British Auto’s shares over this period?

(b) What was the variance of British Auto’s returns over this period?

(c) What was the standard deviation of British Auto’s returns over this period?