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Problem #2 (12 Marks) A stock has the following prices and dividends. Year Price (at end of year) Dividend 1 $52.50 2 $55.50 $0.35 3

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Problem #2 (12 Marks) A stock has the following prices and dividends. Year Price (at end of year) Dividend 1 $52.50 2 $55.50 $0.35 3 $53.25 $0.30 4 $56.75 $0.36 a. What is the arithmetic and geometric average return on this stock? (6 pts) b. What is the dividend yield on this stock for year 22 (2 pts) c. What is the capital gains/loss yield on this stock for year 3? (2 pts) d. What is the total return on this stock for year 4? (2 pts)

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