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1) A particular stock has a dividend yield of 2.5 percent. Last year, the stock price increased from $29 to $32. What was the total

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1) A particular stock has a dividend yield of 2.5 percent. Last year, the stock price increased from $29 to $32. What was the total return for the year? 2) Over the last 12 months an investment in the Vanguard Total Market Index returned 23.4 percent with a standard deviation of 33.4 percent (far more than the typical 8% return and with more risk than the historical 18% standard deviation). Assuming that the returns on this investment are normally distributed, how frequently do you expect to rarn between -10.0 percent and 56.8 percent? How often do you expect to earn less than -10.0 percent? 3) You are given the returns for the following three stocks: Return Year Stock B Stock C Stock A 7% 25% 7% 1 2 3 4 5 7% 7% 7% 9% -14% 8% 12% 20% -36% 18% 11% 17% Calculate the arithmetic return, geometric return, and sample standard deviation for each stock. Do you notice anything about the relationship between an asset's arithmetic return, standard deviation, and geometric return? Do you think this relationship will always hold

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