3.2. 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 36.10 3.00 1990 33.60 3.00 1991 37.80 3.00 1992 30.90 2.30 1993 26.80 1.60 1994 24.80 1.60 1995 31.60 1.60 1996 28.50 1.60 1997 24.25 1.60 1998 35.60 1.60 1 2 a. Estimate the average annual return you would have made on your investment. 4 ANSWER: Year Annual return Average annual return 1989 0.082543441 7 1990 0.013850416 8.25% 1991 0.214285714 1992 -0.1216931221 1993 -0.080906149 1994 -0.014925373 1995 0.3387096771 3 1996 -0.047468354 1997 -0.092982456 1998 0.5340206191 5b. Estimate the standard deviation and variance in annual returns c. If you were investing in Unicom today, would you expect the historical standard deviations and variances to continue to hold? Why or why not