You must show timelines, formulas with the values (numbers) included, and the final answer and you should NEVER ROUND INTERMEDIATE CALCULATIONS. Final dollar answers should be rounded to two decimal places. Unless otherwise indicated, final interest rate answers should be rounded to 6 decimal places if expressed as a decimal or 4 decimal places if expressed as a percent. You do not need to show trailing zeros (i.e., if no non-zero digits remain, 2.5% will do instead of 2.500000%) but make certain there are none.

Question 1 You are considering investing in DDC stock. Your broker reports to you the following information on retrospective returns Ri, and the stock price Pi. Year i 2017 2018 2019 2020 R; 0.30 0.20 -0.10 0.15 Pi $2.20 $1.80 $2.08 $2.00 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 marks) b) Using the dividend growth model, find was dividend received in 2018? (2 marks) Question 1 You are considering investing in DDC stock. Your broker reports to you the following information on retrospective returns Ri, and the stock price Pi. Year i 2017 2018 2019 2020 R; 0.30 0.20 -0.10 0.15 Pi $2.20 $1.80 $2.08 $2.00 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 marks) b) Using the dividend growth model, find was dividend received in 2018? (2 marks)