Q1. You buy a share of stock for $20, hold for 1 year, collect $1 dividend, and sell the stock for $22.

1. (2) What is the before tax dividend yield?

2. (2) What is the before tax capital gain yield?

3. (1) What is the total return? and

4. (1) What is the real rate of total return if inflation is 4%?

Q2. Fill in all the banks in the following table

(A)	(B)	(C)	(D)	(E)	(F)	(G)
Scenario	Probability	Rate of Return	Col. B C Col. C	Deviation from Expected Return	Squared Deviation	Col. B Col. F
Severe recession	0.05	-30
Mild recession	0.25	-10
Normal growth	0.40	10
Boom	0.30	30
	Expected Return=				Variance=
				Standard Deviation=