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You are considering investing in DDC stock. Your broker reports to you the following information on retrospective returns R i , and the stock price

You are considering investing in DDC stock. Your broker reports to you the following information on retrospective returns Ri, and the stock price Pi.

YeariRiPi

2017 0.30 $2.20

2018 0.20 $1.80

2019 -0.10 $2.08

2020 0.15 $2.00

  1. a)Indicate the appropriate formula, with the values included, to compute the standard deviation of these ex-post returns, and then calculate it (NOTE: You do not have to use the table method illustrated in the lectures)
  2. b)Using the dividend growth model, find was dividend received in 2018?

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