1. From the price data below, compute the percentage holding period returns for periods 2, 3 and 4. There were no cash payments during any of the periods.

Period	Stock Price	Holding Period Return
1	$10
2	$13	?
3	$11	?
4	$15	?

2. From the holding period returns below, compute the average return and the standard deviation of returns.

Period	Holding Period Return
1	6%
2	3%
3	-1%
4	-3%
5	5%
6	0%

3. From the holding period returns below, compute the arithmetic average return and the geometric average return.

Period	Holding Period Return
1	4%
2	2%
3	1%
4	-2%
5	2%
6	2%

4. From the average returns below, compute the market risk premium for Small Cap Stocks

Asset	Average Return	Risk Premium
Large Cap Stocks	11.8%
Small Cap Stocks	16.5%	?
Long-Term Coporate Bonds	6.4%
Intermediate-Term Government Bonds	5.5%
U.S. Treasury Bills	3.8%

5. From the year-end prices and dividends below, compute the arithmetic and geometric average returns for the stock. Hint: compute the holding period returns first (there will only be 5 holding period returns).

Period	Stock Price	Dividend	Holding Period Return
1	$43.15
2	$48.13	$0.45
3	$57.05	$0.49
4	$45.13	$0.55
5	$52.05	$0.62
6	$61.13	$0.68