1. A stock had the following annual returns: 14.82% , 28.98% , -11.71% , and 9.13%. Compute the following for the stock:

a) Expected Return :

b) Variance :

c) Standard Deviation :

2. Magnetic Corporation expects dividends to grow at a rate of 13.82% for the next two years. After two years, dividends are expected to grow at a constant rate of 6.91% , indefinitely. Magnetic’s required rate of return is 11.27% and they paid a $1.22 dividend today. Compute the following for Magnetic Corporation’s common stock:

a) Dividend at end of year 1 :

b) Dividend at end of year 2 :

c) Dividend at end of year 3 :

d) Price of stock at end of year 2 :

e) Price of stock today :