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Use the following table to answer questions 1 through 4. Dividend Year Price 1 $33.00 2 $36.00 3 $43.00 4 $46.00 5 $34.00 $42.00 $0.55

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Use the following table to answer questions 1 through 4. Dividend Year Price 1 $33.00 2 $36.00 3 $43.00 4 $46.00 5 $34.00 $42.00 $0.55 $0.60 $0.63 $0.72 $0.81 1) The arithmetic average retum to investors buying the above stock in year 1 and selling it in year 6 is: a) 10% b) 19.99% c) 12.3% d) 8.34% 2) The geometric average return to investors buying the above stock in year 1 and selling it in year 6 is: a) 19.09% b) 6.69% c) 13.5% d) cannot be found 3). The dividend yield to investors from year 1 to year 2 is: a) 1.679 b) 1.32% c) 1.20% d) cannot be found 4) The capital gains yield to investors from year 4 to year 5 is a) 12.39% I b) 21.39% c) -26.09% d) cannot be found

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