Part 1:

Blair purchased 300 shares of stock last year at a total cost of $13,380. He has received a total of $600 in dividends on these shares. Today, Blair sold the shares at a price per share of $35. What is his total return in dollars on this investment?

$300

$-2,280

$-2,580

$-300

Part 2:

Chase Bank pays an annual dividend of $1.17 per share on its common stock. One year ago, this stock sold for $54.00 per share. Today, the stock is priced to sell at $32.20 a share. What is the capital gains yield?

-33.62 percent

-38.18 percent

-29.45 percent

-40.37 percent

Part 3:

A stock produced the following returns over the past 5 years: 13.5 percent, 4.3 percent, -14.4 percent, 22.9 percent, and 11.3 percent. What is the arithmetic average risk premium for this stock if the average risk-free rate for the period was 4.4 percent?

3.12 percent

3.82 percent

2.92 percent

3.62 percent