1) You are considering investing in DDC stock. Your broker reports to you the following information on retrospective returns Ri, and the stock price Pi.

Year i Ri Pi

2017 0.30 $2.20

2018 0.20 $1.80

2019 0.10 $2.08

2020 0.15 $2.00

1. a) Indicate the appropriate formula, with the values included, to compute the standard deviation of these ex-post returns, and then calculate it (NOTE: You do not have to use the table method illustrated in the lectures).
2. b) Compute the geometric average returns.
3. c) What is a better measure of the expected returns?
4. d) Using the dividend growth model, find the dividend received in 2021?