Assume today is Dec. 31^st, 2020 and you observe that ECC Companys current stock price is $120. Analysts forecast that ECCs next dividend, to be paid at year-end of 2021, will be $2.50. You also find the following historic annual returns of the companys stock for the last 4 years.

	2017	2018	2019	2020
ECCs Returns	+50%	+40%	-10%	-7%

In addition, you have the following information: risk-free rate is 2% and the expected return on the market is 9.5%.

1. Based on ECCs return in the last 4 years, calculate the arithmetic average return, geometric average return, and standard deviation of ECCs stock return.

2. Assume you use the arithmetic average return you calculated in part a) as an estimation of the stocks future expected return, what should ECC stocks beta be according the CAPM model?

3. You are thinking of buying some ECCs stock. You assume that the arithmetic average return you calculated in part a) for ECCs stock is an accurate estimation for its future expected return. What price should you expect for its stock at the END of 2021, right after next dividend of $2.50 is paid?