Play the Market Risk Free Give yourself some play money and try your hand at stock investing at http://finance.yahoo.com. Decide on how you will diversify your stock portfolio across different classifications as discussed in this chapter

(e.g., by industry, capitalization, risk). Start your account by selecting at least 10 stocks. Then track your portfolio over several weeks. Compare your performance to that of a benchmark index over the same time period.

Blue Chip Dividends for You You own 400 shares of a blue chip company’s stock, which currently is worth \($65\) per share. The company pays a quarterly dividend of \($0.90\), for a total of \($3.60\) per year.

1. How much will your dividend check be this quarter?

2. What tax rate will be applicable to this dividend if the stock is held in a taxable account and you’re in the 15 percent federal income tax bracket?

3. What is the dividend yield on this stock

(pretax)?