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This is one question altogether...but there are multiple parts Determine optimal investment. At the beginning of the year, your client has the following investment choices.

This is one question altogether...but there are multiple parts

Determine optimal investment. At the beginning of the year, your client has the following investment choices. Ignoring tax, determine the return for each investment and advise your client of the benefit and risk of each option assuming they are risk-averse.

  1. 100 Shares in a publicly-traded company that cost a total of $2,600 and pays an annual dividend of $0.50 per share. The investment value is not anticipated to change during the year. What is the return on investment before tax ___________?

  1. Bonds of a publicly traded company that cost a total of $2,600 and pay annual interest of 1.6%. The investment value is not anticipated to change during the year. What is the bond annual return __________ ?

  1. A one-year GIC at a chartered bank that costs $2,600 and pays annual interest of 1.5%. What is the annual return ? ____________

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