Question
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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