Estimate the standard deviation and variance in annual

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Reference no: EM132034939

Unicom is a regulated utility serving Northern Illinois. The following table lists the stock prices and dividends on Unicom from 1989 to 1998.

Year	Price (dollars)	Dividends (dollars)
1989	36.10	3.00
1990	33.60	3.00
1991	37.80	3.00
1992	30.90	1.30
1993	26.80	1.60
1994	24.80	1.60
1995	31.60	1.60
1996	28.50	1.60
1997	24.25	1.60
1998	35.60	1.60

a. Estimate the average annual return you would have made on your investment.

b. Estimate the standard deviation and variance in annual returns.

c. If you were investing in Unicom today, would you expect the historical standard deviations and variances to continue to hold? Why or why not?

Reference no: EM132034939

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