1. You have a saving account that you were told has an effective annual return of 9% and compounds daily.  What is the Annual Percentage Rate you on this account?

2. You purchased a stock six months ago for $50 and have since received two quarterly dividend payments of $2 each.  The stock currently sells for $43.  What is your holding period return on this stock?

 

3. Michael has an investment with the following annual returns the past four years:

Year 1    12%

Year 2   -6%

Year 3   9%

Year 4   10%

What is the arithmetic average return over this four year period?