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1.) You bought a stock one year ago for $50.77 per share and sold it today for $56.61 per share. It paid a $1.43 per

1.) You bought a stock one year ago for $50.77 per share and sold it today for $56.61 per share. It paid a $1.43 per share dividend today. What was your realized return?

The realized return was ______%.

2.) You bought a stock one year ago for $51.01 per share and sold it today for $56.33 per share. It paid a $1.06 per share dividend today. How much of the return came from dividend yield and how much came from capital gain?

The return that came from dividend yield is ________%.

3.) The last four years of returns for a stock are as follows:

Year

1

2

3

4

Return

3.9%

28.4%

12.4%

3.7%

a. What is the average annual return?

b. What is the variance of the stock's returns?

c. What is the standard deviation of the stock's returns?

A. _________

B. _________

C.__________

4.) Calculate the 95% prediction intervals for the four different investments included in the following table.

Small Stocks

S&P 500

Corporate Bonds

T-Bills

Average Return

19.94%

12.45%

5.95%

3.73%

Standard Deviation of returns

39.57%

19.74%

7.47%

4.09%

The 95% prediction interval of small stocks is between

______% AND ______%

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