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1. Suppose you bought 100 shares of stock at an initial price of $37 per share. The stock paid a dividend of $0.28 per share

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1. Suppose you bought 100 shares of stock at an initial price of $37 per share. The stock paid a dividend of $0.28 per share during the following year, and the share price at the end of the year was $41. Compute your total dollar return on this investment. Does your answer change if you keep the stock instead of selling it? Why or why not? 2. In problem 1, what is the capital gains yield? The dividend yield? What is the total rate of return on the investment? 5. The rates of retum on Cherry Jalopies, Inc., stock over the last five years were 17 percent, 11 percent, -2 percent, 3 percent, and 14 percent. Over the same period, the return on Straw Construction Company's stock were 16 percent, 18 percent, 6 percent, 1 percent, and 22 percent. What was the arithmetic average return on each stock over this period

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