Problem #$1$

Consider a stock with the following price and dividend information for $2015-2020$

Year Price Dividend

$201550-$

$2016951$

$2017701\mathrm{.}5$

$2018851\mathrm{.}5$

$2019851\mathrm{.}5$

$20201002$

Using Excel find the following for each year: Dividend Yield, Capital Gains Yield, Total Return

Then find the following for your sample of total returns: Arithmetic Average, Variance, Standard Deviation, and Geometric Average.

Problem #$2$

Globoshine Industries $($GLS$)$ is a technology firm working on a solar powered car. HyDriven Co$.($HDR$)$ is a competitor working on a hydrogen powered car. Financial analysts have predicted three likely outcomes:

$-$A $30\%$ chance that solar powered cars will be the automotive technology of choice,

which will cause GLS stock to rise by $50\%$ and HDR to fall by $-30\%$

$-$A $50\%$ chance that solar will be a moderate success, sharing the market with hydrogen technology, in which case GLS will return $8\%$ and HDR will return $12\%$

$-$A $20\%$ chance that solar power will fail to be successful as a technology, in which case GLS will return $-25\%$ and HDR will return $95\%$

Assume an investor has a portfolio with $$12000$ invested in GLS and $$8000$ invested in HDR

Using Excel calculate the expected return and standard deviation of Globodyne, HyDriven, and the investor$$s portfolio.