Using the data in Table 10 2, a What was the average dividend yield for the SP500 from 20022011 b What was the volatility of the dividend yield c What was the average annual return of the SP500 from 20022011 excluding dividends (i e , from capital gains only) d What was the volatility of the S P 50...

a b c d ear End SP 500 Capital Dividends Dividend Index Gains Return Paid Yield 2001 114808 2 ...

Using the data in Table 10.2, a. What was the average dividend yield for the SP500 from

Question:

Using the data in Table 10.2,
a. What was the average yield for the SP500 from 2002–2011?
b. What was the volatility of the yield?
c. What was the average annual return of the SP500 from 2002–2011 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?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...