A. On December , 2007, the common stock of Google Inc. (GOOG) was trading for $669.23. One year later the shares sold for only $315.24. Google has never paid a common stock dividend. What rate of return would you have earned on your investment had you purchased the shares on December , 2007?

B. The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1,410 and on December 24, 2008, the index was approximately 886 . If the average dividend paid on the stocks in the index is approximately 3.0 percent of the value of the index at the beginning of the year, what is the rate of return earned on the S&P index? What is your assessment of the relative riskiness of investing in a single stock such as Google compared to investing in the S&P index