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4) Unicorn is a regulated utility serving Northern Illinois. The following table lists the stock prices & dividends from 1989 to 1998. Year Price Dividends
4) | Unicorn is a regulated utility serving Northern Illinois. | ||||||
The following table lists the stock prices & dividends from 1989 to 1998. | |||||||
Year | Price | Dividends | |||||
1989 | 36.10 | ||||||
1990 | 33.60 | 3.00 | |||||
1991 | 37.80 | 3.00 | |||||
1992 | 30.90 | 3.00 | |||||
1993 | 26.80 | 2.30 | |||||
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 | |||||
a) | Estimate the average annual return you would have made on your investment. | ||||||
b) | Estimate the standard deviation and variance in annual returns. | ||||||
c) | If you were investing in Unicorn today, would you expect the historical | ||||||
Std Dev & variances to continue to hold? why or why not? | |||||||
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