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A) Wanda Sotheby purchased 170 shares of Home Depot stock at $150 a share. One year later, she sold the stock for $55 a share.

A) Wanda Sotheby purchased 170 shares of Home Depot stock at $150 a share. One year later, she sold the stock for $55 a share. She paid her broker a commision of $44 when she purchased the stock and a commision of $51 when she sold it. During the 12 months she owned the stock, she received $138 in dividends. Calculate Wandas total return on this investment. (A loss should be indicated by a minus sign.)

B) Ford Motor Company has a beta of 1.25. If the overall stock market increases by 6 percent, based on this information, how much should investors assume that Ford will increase? (Enter your answer as a percent rounded to 2 decimal places.)

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