Using the data in Table 10.2,

a. What was the average dividend yield for the S&P 500 from 2005–2021?

b. What was the volatility of the dividend yield?

c. What was the average annual return of the S&P 500 from 2005–2021 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?

Appendix