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7-2. (Calculating rates of return) The FTSE 100 comprises the top 100 public companies listed on the London Stock Exchange. On April 10, 2015, this

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7-2. (Calculating rates of return) The FTSE 100 comprises the top 100 public companies listed on the London Stock Exchange. On April 10, 2015, this index had a value of 7089.77. On April 10, 2016, it was at 6204.41. If the average dividend paid on the stocks in the index is approximately 5 percent of the value of the index at the begin- ning of the year, what is the rate of return earned on the FTSE 100 index? What is your opinion on the relative riskiness of investing in Tesco (as in the previous ques- tion) compared to that of investing in an FTSE 100 tracker fund

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