A stock has had the following year$-$end prices and dividends:

Year Price Dividend

$1$ $$61\mathrm{.}18-$

$264\mathrm{.}83$ $$0\mathrm{.}72$

$372\mathrm{.}180\mathrm{.}78$

$463\mathrm{.}120\mathrm{.}86$

$569\mathrm{.}270\mathrm{.}95$

$676\mathrm{.}931\mathrm{.}08$

a$)$ Compute the annual returns for the stock for years $2,3,4,5,$ and $6?(5$ marks$)$

b$)$ What are the arithmetic and geometric average returns for the stock? $(6$

marks$)$

c$)$ If the risk$-$free rate is $2$ percent, what is the risk premium of this stock? Use

the arithmetic average in your calculation. $(3$ marks$)$

d$)$ What is the standard deviation of this stock? Use the arithmetic average in

your calculation. $(5$ marks$)$