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Maria is reviewing stocks for inclusion in her portfolio. The stock she wishes to analyze is ABC limited a diversified manufacturer of pet products. One

Maria is reviewing stocks for inclusion in her portfolio. The stock she wishes to analyze is ABC limited a diversified manufacturer of pet products. One of the key concerns is risk; as a rule, she will invest only in stocks because standard deviation below 10% she has gathered price and dividend data below for ABC over the past three years 2018 - 2020 and assumes that each years return is equally probable.

Stock Price

Year

Begining

End

Dividend paid

2018

35.00

36.50

3.50

2019

36.50

34.50

3.50

2020

34.50

35.00

4.00

Calculate the averagereturn and the standard deviation of ABC for the period from 2018 to 2020.

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