Year End S&P 500 Index Dividends Paid* S&P 500 Realized Return (%) Microsoft Realized Return (%) 1-Month T-Bill Return (%) 2004 1211.92 2005 1248.29 23.15 4.90 -0.90 3.00 2006 1418.3 27.16 15.80 15.80 4.80 2007 1468.36 27.86 5.50 20.80 4.70 2008 903.25 21.85 -37.00 -44.40 1.50 2009 1115.1 27.19 26.50 60.50 0.10 2010 1257.64 25.44 15.10 -6.50 0.10 2011 1257.61 26.59 2.10 -4.50 0.00 2012 1426.19 32.67 16.00 5.80 0.10 2013 1848.36 39.75 32.40 44.30 0.00 2014 2058.9 42.47 13.70 27.60 0.00 2015 2043.94 43.45 1.40 22.70 0.00 2016 2238.83 49.56 12.00 15.10 0.20 2017 2673.61 53.99 21.80 40.70 0.80

Using the data in the table : a. What was the average dividend yield for the S&P 500 from 2005-2017? b. What was the volatility of the dividend yield? c. What was the average annual return of the S&P 500 from 2005-2017 excluding dividends (i.e., from capital gains only)? d. What was the volatility of the S&P 500 returns from capital gains? e. Were dividends or capital gains a more important component of the S&P 500's average returns during this period? Which were the more important source of volatility? a. What was the average dividend yield for the S&P 500 from 2005-2017? The average dividend yield is %. (Round to two decimal places.)