4. One year ago, Theresa purchased 600 shares of Outland Co. stock for $3,600. The stock does not pay any regular dividends but it did pay a special dividend of 50.10 a share last week. This morning, she sold her shares for $7.25 a share. What was the total return (%0) on this investment? Answer: 22.5% A stock has produced returns of 15.6 percent, 3.4 percent, 11.7 percent, and -5.0 percent over the past four years, respectively. What is the geometric average return? 5. Answer: .06124 Or 6.1% A stock is expected to produce the following returns given the various states of the economy. What is the expected return on this stock? 6. Prob of state Rate of Return Recessior Normal Boom 25 .65 .10 .27 .16 .32 Answer: 6.85%