Calculate the average stock return from 2005–2007, the standard deviation and coefficient of variation over this period. The market price of the stock was $31 at year-end 2004, $35 at year-end 2005, $42 at year-end 2006, and $55 at year-end 2007
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1. Calculate the average stock return from 2005–2007, the standard deviation and coefficient of variation over this period.
The market price of the stock was $31 at year-end 2004, $35 at year-end 2005, $42 at year-end 2006, and $55 at year-end 2007.
For valuation purposes, industry experts use the dividend valuation model to value the common equity interest of industry firms.
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Market Returns: The stock returns for the market as a whole were as follows: 15.7 percent in 2005, 8.2 percent in 2006, and 12.1 percent in 2007
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