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A stock has had the following year-end prices and dividends: a. Calculate the holding period return for each year from year 1 to year 5.

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A stock has had the following year-end prices and dividends: a. Calculate the holding period return for each year from year 1 to year 5. Year 1: (15.61 - 13.25 +.15)/13.25 = .1894 = 18.9% Year 2: (16.72 - 13.25 + .1 5 + .18)/13.25 = .286 + 1 = 1 .286^(1/2) = 1.1 34 - 1 = .134 = 13.44% Year 3: (15.18 - 13.25 + .15 + .18 + .20)/13.25 = .1856 + 1 = 1.1856^(1/3) = 1.058 - 1 = .058 = 5.84% Year 4: (17.12 - 13.25 + .15 + .18 + .20 + .24)/13.25 = .3501 + 1 = 1.3501^(1/4) = 1.0779 - 1 = 0.0779 = 7.794% Year. 5: (20.43 - 13.25 + .15 + .18 + .20 + .24 + .28)/13.25 = .6211 + 1 = 1.6211^(1/5) = 1.101 - 1 = .1014 = 10.14% b. Calculate the arithmetic average return, geometric average return, and standard deviation of five annual returns you compute from part a

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