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2. Unicom is a regulated utility serving Northern Illinois. The following table lists the stock prices and dividends on Unicom from 1989 to 1998. Year

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2. Unicom is a regulated utility serving Northern Illinois. The following table lists the stock prices and dividends on Unicom from 1989 to 1998. Year Price (dollars) Dividends (dollars) 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 36.10 33.60 37.80 30.90 26.80 24.80 31.60 28.50 24.25 35.60 3.00 3.00 3.00 2.30 1.60 1.60 1.60 1.60 1.60 1.60 b. Estimate the average annual return you would have made on your investment. Estimate the standard deviation and variance in annual returns. If you were investing in Unicom today, would you expect the historical standard deviations and vari- ances to continue to hold? Why or why not? c

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