please use formula not excel sheet thank you Assume the returns of a stock for the previous five years are as follows: 8%, 12%, -4%, 9% and 14%.a. What is the arithmetic average? What is the geometric average?b. What is the historical standard deviation of the returns of this stock?c. Another stock in the same industry has had the following year end prices anddividends:Year Price$60.1873.6694.1889.3578.4995.05Dividend1$.60.64.72.801.204What are the arithmetic and geometric returns for the stock?d. You buy a stock for $62.50 per share and hold it for one year. During the year, thestock paid a dividend of $1.50 and the year-end stock price was $71.25. What was yourholding period return on the stock? Also, divide the return of the stock into its twocomponents: the dividend yield and the capital gains component.e. Explain the three forms of market efficiency and its significance as it relates totrading strategies.T23t56

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Assume the returns of a stock for the previous five years are as follows: 8%, 12%, - 4%, 9% and 14%. a. What is the arithmetic average? What is the geometric average? b. What is the historical standard deviation of the returns of this stock?

Assume the returns of a stock for the previous five years are as follows: 8%, 12%, - 4%, 9% and 14%. a. What is the arithmetic average? What is the geometric average? b. What is the historical standard deviation of the returns of this stock?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 17P

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Question

please use formula not excel sheet thank you

Assume the returns of a stock for the previous five years are as follows: 8%, 12%, -
4%, 9% and 14%.
a. What is the arithmetic average? What is the geometric average?
b. What is the historical standard deviation of the returns of this stock?
c. Another stock in the same industry has had the following year end prices and
dividends:
Year Price
$60.18
73.66
94.18
89.35
78.49
95.05
Dividend
1
$.60
.64
.72
.80
1.20
4
What are the arithmetic and geometric returns for the stock?
d. You buy a stock for $62.50 per share and hold it for one year. During the year, the
stock paid a dividend of $1.50 and the year-end stock price was $71.25. What was your
holding period return on the stock? Also, divide the return of the stock into its two
components: the dividend yield and the capital gains component.
e. Explain the three forms of market efficiency and its significance as it relates to
trading strategies.
T23t56

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