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1. Suppose a stock had an initial price of $60 per share, paid a dividend of $2.20 per share during the year, and had an

1.

Suppose a stock had an initial price of $60 per share, paid a dividend of $2.20 per share during the year, and had an ending share price of $70.

Compute the percentage total return. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Total return

%

2.

Suppose a stock had an initial price of $54 per share, paid a dividend of $1.30 per share during the year, and had an ending share price of $64.

What was the dividend yield and the capital gains yield? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Dividend yield %
Capital gains yield %

3.

A stock has had returns of 16.82 percent, 12.22 percent, 5.96 percent, 26.98 percent, and ?13.54 percent over the past five years, respectively.

What was the holding period return for the stock? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Holding-period return

%

4.

Consider the following rates of return:

Year Large Company US Treasury Bill
1 3.88 % 5.78 %
2 14.31 2.45
3 19.05 3.68
4

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