Use the end of year price and dividend data (dividend paid during year) provided below for the common stocks of Norvell and Mullen to respond to the questions 5 through 9.

Norvell Mullen

Date Close Price Dividend Close Price Dividend

12/31/2015 32.00 26.00

12/31/2016 38.10 0.74 32.40 0.66

12/31/2017 34.20 0.94 27.15 0.78

12/31/2018 42.05 1.14 36.75 0.90

12/31/2019 39.30 1.34 31.10 1.02

12/31/2020 44.45 1.54 32.85 1.14

5. Compute the annual holding period returns for 2016 through 2020 for each stock.

6. Compute the arithmetic mean annual return and the geometric mean annual return over the five year period for each stock.

7. Compute the standard deviation of the annual returns over the five-year period for each stock.

8. Assuming that the inflation rate was 2.20% in 2020, what was the "real rate of return" on Norvells common stock in 2020?

9. Given that the annual yield on a one-year Treasury Note in 2020 was 2.64%, what was the ex post risk premium on Mullens common stock in 2020?