Question

1) You purchased a stock at a price of $42.90. The stock paid a dividend of $1.59 per share and the stock price at the end of the year is $48.55.

What is the capital gains yield? Multiple Choice 11.64% 13.17% 11.06% 16.88% 3.71%

2) Based on the period of 1926 through 2017, _____ have tended to outperform other securities over the long-term.

Multiple Choice

• a) U.S. Treasury bills

• b) large-company stocks

• c) long-term corporate bonds

• d) small-company stocks

• e) long-term government bonds

3)An asset has an average return of 11.03 percent and a standard deviation of 23.73 percent. What is the most you should expect to earn in any given year with a probability of 2.5 percent?

Multiple Choice

• a) 58.49%

• b) 82.22%

• c) 70.36%

• d) 46.63%

• e) 34.76%

Answer 1