1. consider the following 5 monthly returns: 0.05, -0.02, 0.04, 0.08,-0.01

a. calculate the arithmetic average monthly return over this period

b. calculate the geometric average monthly return over this period

c. calculate the monthly variance over this period

d. calculate the monthly standard deviation over this period

2.you have just purchased a share of stock for $20.19. The company is expected to pay a dividend of $0.57 per share in exactly one year. If you want to earn 9.8% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend?

3.the following table contains prices and dividends for a stock. all prices are after the dividend has been paid. if you bought the stock on january 1 and sold it on december 31, what is your realized return? make sure to round all intermediate calculations to at least 5 decimal places.

price dividend

jan 1 9.83 ---

mar 31 10.83 0.22

jun 30 10.33 0.22

sep 30 10.93 0.22

dec 31 10.83 0.22

4.your portfolio consists of 80 shares of C and 30 shares of E, which you just bought for $21 and $30 per share, respectively.

a.what fraction of your portfolio is invested in C? In E?

b. If C increases to $25 and E decreases to $29, what is the return on your portfolio?