The following data for Coca-Cola (ticker symbol = KO) are the December ending prices (adjusted for stock splits and dividends) and the annual dividend. This information can be obtained from a source such as Yahoo! Finance. Place these data in a spreadsheet for columns A-C. Use 3 decimal places and calculate results in decimal form (not percentages). You will need the 2000 price to calculate the 2001 return. For each year 2001-2010:
a. Calculate as column D the return relative for the price change only.
b. Calculate as column E the Total Return based on price change only.
c. Calculate as column F the return relative based on price change and dividends.
d. Calculate as column G the Total Return based on price change and dividends.
e. Calculate the arithmetic and geometric means for 2001—2010 for price change only and for Total Return.
f. Calculate the ending wealth as of December 31, 2010, based on Total Returns, for $1 invested in Coca-Cola stock at the beginning of 2001.
Calculate the standard deviation of the Total Returns for the years 2001-2010. (Note: use the total returns and not the return relatives.)
Coca-Cola ending prices and dividends
2010 $64.39, $1.76; 2009 $54.10, $1.64; 2008 $41.52, $1.52; 2007 $54.70, $1.36; 2006 $41.93, $1.24
2005 $34.06, $1.12; 2004 $34.29, $1,00; 2003 $40.88, $0.88; 2002 $34.61, $0.80; 2001 $36.62, $0.72, 2000 $46.80