Question $3(25$ marks$)$

Maria is reviewing stocks for inclusion in her investment portfolio. The stock she wishes to analyze is ABC Ltd$,$

diversified manufacturer of pet products. One of her key concerns is risk; as a rule, she will invest only in stocks with

a standard deviation below $10\%.$ She has gathered price and dividend data shown below, for ABC over the past $3$

years, $2018-2020,$ and assumes that each year's return is equally probable.

Calculate the average return and the standard deviation of ABC for the period from $2018$ to $2020.$