Suppose a stock had an initial price of $53 per share, paid a dividend of $2.28 per share during the year, and had an ending share price of $46. Compute the percentage total return. Enter the answer in 4 decimals e.g. 0.1234.

Calculate the arithmetic average of the following returns.

Year Return

1 0.19

2 0.17

3 -0.02

4 -0.20

5 -0.18

Enter the answer with 4 decimals, e.g. 0.1234.

Calculate the standard deviation of the following returns.

Year Return

1 -0.14

2 -0.17

3 -0.19

4 0.28

5 0.13

Enter the answer with 4 decimals, e.g. 0.1234.

Calculate the variance of the following returns.

Year Return

1 -0.20

2 0.04

3 -0.14

4 0.25

5 0.14

Enter the answer with 6 decimals, e.g. 0.123456.

A stock has an expected return of 0.10, its beta is 0.95, and the expected return on the market is 0.05. What must the risk-free rate be? (Hint: Use CAPM) Enter the answer in 4 decimals e.g. 0.0123.