We learn about return and risk this week. Let$$s pick a stock and collect its annual stock prices and dividend payments for the past $3$ years $(2021-2023).$ Given the stock prices and dividends, compute $3$ annual holding period returns $($HPRs$).$ Then, use these HPRs to compute its average return and standard deviation. In addition, with the price and dividends, compute its annual internal rate of return $($IRR$)$ for the past $3$ years.

Compare your results to the market. The market, with S&P $500$ Index as proxy, had the average annual return of $9\mathrm{.}38\%,$ the standard deviation of $16\mathrm{.}75\%,$ and the IRR of $8\mathrm{.}47\%$ in the past $3$ years. The detail computation for the market is attached.

Share your results. I will post an example. As usual, you need to post one message and reply at least twice to others to earn full participation points.

$------------------$

To find historical prices

To find historical prices and dividends for the stock you choose, you can go to finance.yahoo.com. After you put in the ticker, you click on the "Historical Data" on the left. You can then choose the monthly prices to get the prices $($Close Price$)$ and dividends you need.