Jordan Grinch invested in stocks and she purchased a share of Marriot common stock for $40.00 eight days ago. Jordan wants to sell her share today at a price of $46.00. Also, during her investment, she received a dividend payment of $4.00. If dividends are taxed at 20.00% and capital gains are taxed at 30.00%, what is the after-tax holding period return for Jordan?

1. 25.00%
2. 18.50%
3. 12.50%
4. 22.50%

Frederick Fulham invests has just bought a common stock, which is $55.00 per share. He has earned $4.00 and $3.00 dividends during his investment period. After a while, he decided to sell his shares for $50.00. If dividend income is taxed at 40.00% and capital gains are taxed at 20.00%, what is his after-tax holding period return?

1. 14.91%
2. 1.45%
3. -1.45%
4. 16.73%

Suppose that the expected rate of return for the common stock of Yum Brands, Inc, is 12.00%, with a standard deviation of 18.00% and the expected rate of return for the Darden Restaurants, Inc. is 12.00%, with a standard deviation of 11.00% on per share basis. Which stock would you consider to be riskier between these two companies?

1. Yum Brands, Inc.
2. Darden Restaurants, Inc.
3. Both Yum Brands, Inc. and Darden Restaurants, Inc.
4. None of them is riskier relative to each other