PLEASE SHOW HOW YOU GOT YOUR ANSWER

1) Suppose you invested $60 in the Ishares Dividend Stock Fund (DVY) a month ago. It paid a dividend of $0.63 today and then you sold it for $65. What was your return on the investment? A) 6.57% B) 7.51% C) 9.38% D) 10.32% 2) Suppose you invested $93 in the Ishares High Yield Fund (HYG) a month ago. It paid a dividend of $0.53 today and then you sold it for $94. What was your dividend yield and capital gains yield on the investment?

A) 0.54%, 1.13%

B) 0.57%, 1.08%

C) 0.57%, 1.13%

D) 1.08%, 1.18%

3) Your investment over one year yielded a capital gains yield of 5% and no dividend yield. If the sale price was $114 per share, what was the cost of the investment? A) $119.43 B) $103.14 C) $108.57 D) $114.00 4) The S&P 500 index delivered a return of 20%, -10%, 20%, and 5% over four successive years. What is the arithmetic average annual return for four years? A) 10.50% B) 13.13% C) 8.75% D) 9.63% 5) Suppose the quarterly arithmetic average return for a stock is 10% per quarter and the stock gives a return of 15% each over the next two quarters. The arithmetic average return over the six quarters is .

A) 15.17%

B) 11.67%

C) 12.83%

D) 16.33%

6) Bear Stearns' stock price closed at $98, $103, $58, $29, $4 over five successive weeks. The weekly standard deviation of the stock price calculated from this sample is .

A) $30.07

B) $49.40

C) $42.96

D) $34.37

7) You purchase a 30-year, zero-coupon bond for a price of $25. The bond will pay back $100 after 30 years and make no interim payments. The annual compounded return (geometric average return) on this investment is .

A) 4.49%

B) 5.68%

C) 4.02%

D) 4.73%

8) The average annual return for the S&P 500 from 1886 to 2006 is 9.5%, with a standard deviation of 18%. Based on these numbers, what is a 95% confidence interval for 2007's returns?

A) -13.25%, 22.75%

B) -16.5%, 35.5%

C) -26.5%, 45.5%

D) -11.5%, 30.5%

9) Consider the following price and dividend data for Quicksilver Inc.: Date Price ($) Dividend ($) December 31, 2004 $14.88 January 26, 2005 $13.61 $0.11 April 28, 2005 $9.14 $0.11 July 29, 2005 $10.74 $0.11 October 28, 2005 $8.02 $0.11 December 30, 2005 $7.72 Assume that you purchased Quicksilver's stock at the closing price on December 31, 2004 and sold it after the dividend had been paid at the closing price on January 26, 2005. Your dividend yield for this period is closest to .

A) -7.80%

B) -8.53%

C) 0.74%

D) 0.81%

10) Consider the following price and dividend data for Quicksilver Inc.: Date Price ($) Dividend ($) December 31, 2004 $14.01 January 26, 2005 $13.47 $0.13 April 28, 2005 $9.14 $0.13 July 29, 2005 $10.74 $0.13 October 28, 2005 $8.02 $0.13 December 30, 2005 $7.72 Assume that you purchased Quicksilver's stock at the closing price on December 31, 2004 and sold it after the dividend had been paid at the closing price on January 26, 2005. Your capital gains rate (yield) for this period is closest to .

A) 0.93%

B) 1.02%

C) -3.85%

D) -2.93%