Please show steps The following are year-end adjusted closing stock prices and cash dividend...
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The following are year-end adjusted closing stock prices and cash dividend paid for IBM. Note that the adjusted closing prices are adjusted for stock splits only (not for cash dividend) 1. IBM Closing stock price 191.55 187.57 160.44 137.62 165.99 153.42 Cash dividend Return (%) Date 12/2012 12/2013 12/2014 12/2015 12/2016 12/2017 3.7 4.25 -12.20% -11.11% 24.61% 4.02% 5.5 5.9 Calculate 5-year holding period return (from 2013 to 2017) of IBM and interpret the return. Calculate arithmetic and geometric average returns over the five-year period for IBM. Interpret the returns Calculate the standard deviation of returns for IBM and express the unit. Over the past five years, MSFT's arithmetic average return and standard deviation are 30% and 40%, respectively. Based on the information above, is IBM or MSFT riskier? Use the information in d. does the risk-return tradeoff hold for IBM and MSFT? Explain. a. b. c. d. e
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