You purchased 1,000 share of stock X by the end of 2018 for $60 per share, and the stock price has changed by the end of each year till last year as follows, assume no dividend paid during these years:

a) What was your holding-period returns for three years?

b) What was your annual internal rate of return?

c) What is the standard deviation of returns of your investment?

d) If stock Y has a same average return but the standard deviation of returns is 15%, which stock is a better investment?

Year Price

2018 60

2019 54

2020 66

2021 80